Oil rallies, pushes up stocks

Tuesday, Nov 22, 2016 12:45

Investors at Tan Viet Securities Inc's trading platform. Local shares extended gains on Tuesday morning as energy stocks continued to rise on higher crude prices. — Photo tinnhanhchungkhoan.vn

Shares continued to rise on Tuesday as crude prices rallied, boosting investor confidence in local gas and oil stocks.

The benchmark VN Index on the HCM Stock Exchange rose 0.5 per cent to close at 677.81 points and the HNX Index on the Ha Noi Stock Exchange edged up 0.4 per cent to close at 81.03 points.

Oil and gas stocks were the strongest gainers in the early session, driven by high expectations of an agreement between the Organisation of Petroleum Exporting Countries (OPEC) and other global producers by the end of this month to curb the current output level and restore market stability.

Both Brent crude and US crude West Texas Intermediate (WTI) rose 1.4 per cent in early Asia trading, to US$49.56 a barrel and $48.9 a barrel.

Brent crude has rallied by 6.6 per cent since last Thursday, while WTI has gained about 7.7 per cent in the same period.

Positive developments in global oil markets bolstered investor confidence in local energy stocks, and leading firms such as PetroVietnam Gas Corp (GAS) and PetroVietnam Technical Services Corp (PVS) rose 1.8 per cent and 2.3 per cent, respectively.

Other performers included steelmakers such as Tien Len Steel JSC (TLH), Hoa Sen Group (HSG) and Nam Kim Steel JSC (NKG), who extended their increases from Monday.

Blue chips other than property developer Vingroup JSC (VIC) and Vietcombank (VCB) made gains, supporting the market’s upward trend.

Trading liquidity remained low, with around 82.4 million shares worth VND1.41 trillion ($62.85 million) being exchanged. — VNS

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