Shares rise on energy, banks

Wednesday, Jun 14, 2017 08:30

Investor watching stocks move. — VNS Photo Thai Ha

Shares rose on both local markets yesterday, boosted by the energy sector and a recovery of large-cap stocks.

The benchmark VN-Index on the HCM Stock Exchange was up 0.77 per cent to end at 756.89 points. Viet Nam’s key stock index has risen nearly 1 per cent in total after the last two sessions.

The HNX-Index on the Ha Noi Stock Exchange advanced 0.49 per cent to finish at 97.31 points. The northern market index recovered from a Monday loss of 0.5 per cent.

More than 275 million shares were traded on both local bourses, worth nearly VND5.4 trillion (US$239.8 million).

The energy sector recorded the strongest growth among 20 industries in the stock market with support from a flat increase of oil prices during the last three days.

Brent crude inched up 0.3 per cent to trade at $48.42 a barrel, totaling a three-day rally of 1.2 per cent.

The three-day rally of oil prices helped local energy stocks post good gains on Tuesday.

Among shares of companies that operate in the energy and related service industries, PetroVietnam Gas (GAS) rose 1.8 per cent, PetroVietnam Coating (PVB) increased by 2.8 per cent and PetroVietnam Mud Drilling (PVC) surged 6.9 per cent.

Recovery of some large-cap stocks was another factor that contributed to market gains. Shares of FLC Faros Construction (ROS) extended rapid gains for a second day, hitting the daily trading limit of 6.9 per cent. ROS has jumped nearly 14 per cent in two days.

Financial-banking stocks also recovered from their decline on Monday. Eight of the nine bank stocks advanced, with BIDV (BID), Asia Commercial Bank (ACB), Vietinbank (CTG) and Sai Gon-Ha Noi Bank (SHB) posting gains of more than 1 per cent.

Among brokerages, Sai Gon-Ha Noi Securities (SHS), HCM City Securities (HCM), VNDirect Securities (VND) and Sai Gon Securities Inc (SSI) were among the biggest gainers.

The VN-Index reached its fresh nine-year high as shares of banks, brokerages and energy firms had an impressive session, Sai Gon-Ha Noi Securities (SHS) said in its daily report.

However, market trading liquidity rose only slightly in comparison to Monday’s figures and remained below the average number of the last 20 sessions, proving that investors were still cautious, SHS added.

Investor confidence has remained low ahead of the US central bank’s two-day meeting on June 14, which could indicate the number of rate hikes expected in 2017. — VNS

Comments (0)