Oil and gas stocks boost markets

Tuesday, Aug 16, 2016 10:48

Investors follow transactions at Sai Gon Securities Incorporation in Ha Noi. On the smaller bourse in Ha Noi, the HNX-Index inched up 0.1 per cent to 83.2 points. — VNS Photo Doan Tung
HA NOI (Biz Hub) — Shares rose slightly yesterday on the two national stock exchanges, led by oil and gas, after global oil recorded the best week in the past four months.

The benchmark VN-Index on the HCM Stock Exchange increased 0.6 per cent to close the session at 659.5 points.

On the smaller bourse in Ha Noi, the HNX-Index inched up 0.1 per cent to 83.2 points

Most oil and gas stocks advanced. PetroVietnam Drilling and Wells Service (PVD) and PVGas (GAS), two of the 10 largest stocks by market capitalisation, added 3.2 per cent and 1.6 per cent, respectively.

Others such as PetroVietnam Technical Services (PVS), PetroVietnam Drilling Mud (PVC) and Petroleum Equipment Assembly & Metal Structure (PXS) increased between 3 per cent and 4.5 per cent.

US West Texas Intermediate crude futures gained 6.4 per cent last week, while Brent crude climbed 6.1 per cent, experiencing its best week in the past one month. The two key oil prices continued to soar on yesterday trading, with the WTI oil up 14 per cent and the Brent crude up 10 per cent.

Besides oil and gas, steel manufacturers and real estate companies also rose. Viet Nam-Italy Steel (VIS) rose 5 per cent while other steelmakers like Hoa Phat Group (HPG), Hoa Sen Group (HSG), and Viet Nam German Steel Pipe (VGS) each increased over 1 per cent.

Many realty stocks were also active yesterday.

Kinh Bac City Development Holdings (KBC) and Tan Tao Industry and Investment (ITA) had over 10 million shares sold on the HCM City's exchange while others like Vinaconex (VCG) and Tasco (HUT) sold three million shares on the Ha Noi's market.

"The market is being segmented. Money is flowing in the shares with good growth potential in the medium and long term," said Nguyen Huu Binh, head of analysis at Viet Nam Investment Securities Co.

According to CBRE Viet Nam, Viet Nam's real estate market could become one of the top five fastest growing in Asia this year given positive macro-economic developments.

Liquidity improved slightly over the previous session, totaling over 155 million shares worth a combined VND2.7 trillion (US$121 million) in the two markets.

Foreign investors continued to offload local shares yesterday. They sold a net value of VND207.7 billion in HCM City's market but remained a net buyer in Ha Noi with a modest value of VND427 million. — VNS

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