VN Index nears peak on oil price

Thursday, Mar 22, 2018 07:12

Viet Nam’s benchmark VN Index rose for the eighth straight session on Wednesday, boosted by energy stocks on rising global oil prices.— VNA/VNS Photo

Viet Nam’s benchmark VN Index rose for the eighth straight session on Wednesday, boosted by energy stocks on rising global oil prices.

The VN Index on the HCM Stock Exchange added 0.86 per cent to close at 1,169.36 points. The benchmark index has rallied a total of 4.1 per cent in the last eight trading days.

More than 237.6 million shares were traded on the southern bourse, worth VND7.32 trillion (US$325.4 million).

The benchmark index broke the all-time high of 1,170 points during the day but narrowed its gains because of increased profit-taking pressure.

Energy stocks were the best-performing industry thanks to the strong growth of oil prices in the Asian trading session.

Oil prices recorded strong gains yesterday on market speculation that the US could reimpose sanctions on Iran – one of the leading exporters in the Organisation of Petroleum Exporting Countries (OPEC).

The sanctions could result in a 250,000-500,000 barrel per day drop in oil exports by the end of the year for Iran, Bao Viet Securities Co (BVSC) said in its note.

The news helped boost Brent crude price up 1.25 per cent yesterday to trade at $68.26 a barrel. Brent crude has gained a substantial 7.3 per cent in the last two weeks.

On the Vietnamese market, PetroVietnam Gas (GAS) and PetroVietnam Drilling and Well Services (PVD) advanced 1 per cent and 5.2 per cent, respectively.

In addition, “market sentiment rebounded in today’s session,” BIDV Securities Co (BSC) said in its daily report.

The VN30 stocks led the market while the mixed performance of other stocks kept the market from rising further, the company said.

The VN30 Index, which tracks the performance of the 30 largest stocks by market capitalisation, grew 1.15 per cent to 1,147.26 points.

The large-cap basket was dominated by gaining stocks, which outnumbered losers by 19 to seven, and four others ended flat.

The strongest gainers among those stocks were FLC Faros Construction (ROS), insurer Bao Viet Holdings (BVH), property developer Vingroup (VIC) and Coteccons Construction Corp (CTD), which jumped at least 3.5 per cent.

Most securities companies made negative forecasts for the movement of the VN Index in the next few sessions.

“As the VN Index is approaching a record high, the market is likely to experience ups and downs amid wide divergence among different stock groups,” BVSC said.

“In this case, the index can fall to the 1045-1055 point support zone from which the index is expected to rebound.”

The minor HNX Index on the Ha Noi Stock Exchange fell 0.24 per cent to end at 134.96 points, marking its first decline after nine straight sessions of growth reaching a total of 7.7 per cent.

On the Unlisted Public Company Market (UPCoM), the UPCOM Index lost 0.71 per cent to 60.64 points, recording a three-day total fall of 1.9 per cent. — VNS

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