VN markets extend rallies on rising oil

Tuesday, Mar 08, 2016 08:20

An investor follows transactions at Sai Gon Securities Incorporation in Ha Noi. The HNX Index on the Ha Noi Stock Exchange inched up 0.1 per cent to end at 79.73 points. — VNS Photo Doan Tung

HA NOI (Biz Hub) — Vietnamese shares yesterday extended rallies on both local markets as energy stocks rose on higher crude oil prices.

The benchmark VN Index on the HCM Stock Exchange rose 0.4 per cent to close at 576.20 points, rallying 3 per cent in the last five trading sessions.

The HNX Index on the Ha Noi Stock Exchange inched up 0.1 per cent to end at 79.73 points. The northern index has gained 0.6 per cent in the last two days.

Local exchanges received a boost from energy stocks, which benefited from higher crude prices after US producers cut the number of oil rigs to the lowest number in the last six years.

US benchmark West Texas Intermediate (WTI) added 1.2 per cent to trade at US$36.35 a barrel and London-traded Brent crude was up 1 per cent to trade at $39.12 a barrel.

WTI has jumped nearly 40 per cent in the last two months from its twelve-year low of $26.21 and Brent crude has surged nearly 18 per cent in the last nine trading sessions on expectations that the Organisation of Petroleum Exporting Countries (OPEC) and other producers such as Russia and US will reduce oil production in an attempt to improve prices.

Among local energy stocks, PetroVietnam Gas Corporation (GAS) surged 6.7 per cent, PetroVietnam Drilling and Well Service Corporation (PVD) and PetroVietnam Mud Drilling Corporation (PVC) jumped 6.3 per cent each.

Natural rubber producers extended gains as rubber prices on the Tokyo Commodity Exchange were up 2.3 per cent to trade at 178.7 yen ($1.58) per kilogramme.

Phuoc Hoa Rubber JSC (PHR) and Thanh Cong Rubber JSC (TNC) added 6.7 per cent each, and Tay Ninh Rubber JSC (TRC) rocketed 7 per cent.

Hoang Anh Gia Lai Agricultural JSC (HNG), auto distributor Hoang Huy Investment Services JSC (HHS), construction company Sao Mai Group Corporation (ASM) and Hoang Quan Consulting-Trading-Service Real Estate Corporation (HQC) helped lift the markets after they were added into the Germany-based exchange traded fund FTSE Vietnam ETF's investment portfolio last Friday.

Investors yesteday traded more than 220 million shares on the two local exchanges, worth VND3.2 trillion ($144 million), an increase of 20 per cent from last week's daily trading value. — VNS

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