Energy stocks continued their upward movement following large gains of global oil prices, which climbed 6 per cent on Tuesday, the highest growth in the past seven months, on expectations that the Organisation of Petroleum Exporting Countries would reach a consensus on oil production cuts by the end of this month.
Shares rose slightly for a second day on the two national exchanges yesterday, driven by energy and rubber stocks which have benefited from sharp price rises in the global markets.
The VN-Index, the measure of 315 stocks on the HCM Stock Exchange, inched up 0.1 per cent to 674.6 points.
On the smaller exchange in Ha Noi, the HNX-Index tracking 377 stocks closed essentially unchanged at 81.1 points.
The two indices increased 0.2 per cent and 0.3 per cent, respectively, on Tuesday.
Energy stocks continued their upward movement following large gains of global oil prices, which climbed 6 per cent on Tuesday, the highest growth in the past seven months, on expectations that the Organisation of Petroleum Exporting Countries would reach a consensus on oil production cuts by the end of this month.
“The rally today was mostly driven by the rebound of world oil prices as well as positive movements of global stock markets amid insignificant impacts of domestic information,” stock analysts at Bao Viet Securities Co wrote in a report.
PV Gas (GAS), the biggest listed energy stock, edged up 0.2 per cent. Others, such as PetroVietnam Drilling and Wells Service (PVD), PetroVietNam Low Pressure Gas Distribution (PGD), PetroVietnam Drilling Mud (PVC) and PetroVietnam Technical Services (PVS) advanced between 1.7 per cent and 3.4 per cent.
Shares of rubber companies also climbed as rubber prices kept rising.
Hoang Anh Gia Lai Co (HAG) and its agribusiness arm Hoang Anh Gia Lai Agricultural Co (HNG) both hit the daily limit rise of 7 per cent on the HCM City’s exchange yesterday. Other rubber shares, such as Da Nang Rubber (DRC) and Quang Nam Rubber Investment (VHG), also gained value.
Rubber prices soared 4.4 per cent yesterday on the Tokyo Commodity Exchange to 205 Japanese yen per kilogramme, the highest in the past year. The price of rubber has climbed 39 per cent since the end of last year.
“This is a positive sign for local rubber companies, especially for debt-laden Hoang Anh Gia Lai Group,” Bao Viet Securities Co’s analysts said, adding that growth of rubber prices would improve cash inflow and reduce the firm’s losses.
Liquidity decreased slightly compared to the previous session with a total of 154 million shares worth a combined VND2.5 trillion (US$112 million) traded in the two markets.
Foreign investors halted their four-day net selling streak and were net buyers in the HCM City’s market yesterday, for a modest value of VND20 billion. They were net sellers on the Ha Noi’s bourse, however, for a net value of VND5 billion worth of shares. — VNS