Oil prices raise market for second day

Wednesday, May 18, 2016 08:15

An investor watches share movements on the Ha Noi Stock Exchange's live stock board. Energy firms helped local markets rise for a second day. — VNS Photo Thai Ha
HA NOI (Biz Hub) — Vietnamese shares extended gains for a second day on both local exchanges as energy stocks continued to be lifted by higher oil prices and debt-laden firms received good responses from creditors.

The benchmark VN Index on the HCM Stock Exchange rose 1.5 per cent to reach a ten-month high at 624.75 points, gaining a total of 2.3 per cent in the last two sessions.

The HNX Index on the Ha Noi Stock Exchange posted an increase of 0.6 per cent to end at 82.21 points, rallying a total of 2.5 per cent in the last five trading days.

The energy sector remained the most important element, which helped boost the local markets on Monday after oil prices climbed to a seven-month high on expectations that US crude stockpiles and other countries' production are declining.

US crude West Texas Intermediate (WTI) inched up 0.2 per cent to trade at US$47.83 a barrel. US crude has recorded a two-day jump of 3.5 per cent.

Large-cap energy firms posted rapid growth yesterday. PetroVietnam Technical Service Corp (PVS) saw a gain of 3.3 per cent, PetroVietnam Gas Corp (GAS) and PetroVietnam Drilling and Well Service Corp (PVD) surged 6.3 per cent and 6.7 per cent, respectively, and PetroVietnam Coating Corp (PVB) jumped 4.6 per cent.

Two other large-cap companies, conglomerate Hoang Anh Gia Lai JSC (HAG) and its subsidiary Hoang Anh Gia Lai Agricultural JSC (HNG) surged 6.8 per cent each on expectations that HAGL will be allowed to restructure its debts and make more loans to improve its business, Bao Viet Securities Corp (BVSC) wrote in its report.

In addition, other companies providing good business news also helped markets rise further.

Dairy firm Vinamilk (VNM) edged up 0.7 per cent on expectations that the company will lift the bar for foreign investors to raise their ownership in the firm.

Giant software and information-technology company FPT Corp (FPT) was up 0.6 per cent after the company announced it would pay each shareholder a 10-per-cent dividend, worth VND1,000 ($0.04) per share.

Steel producer Hoa Phat Group (HPG) advanced 1.2 per cent after the firm reported a year-on-year increase of a quarter in steel product sales to more than 545,000 tonnes during the first four months of the year.

Both local markets traded nearly 191 million shares worth VND3.2 trillion ($142 million), posting an increase of 29 per cent on Monday's trading value. — VNS

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