VN stocks surge, led by energy

Tuesday, Jan 26, 2016 08:03

Investors at Saigon Securities Incorporate's exchange floor in Ha Noi. The benchmark VN Index yesterday made the biggest jump in almost four years. — VNS Photo Doan Tung
HA NOI (Biz Hub) — Vietnamese shares yesterday enjoyed their biggest jump in almost four years as energy stocks benefited from a strong rebound in global oil prices.

The benchmark VN Index on the HCM Stock Exchange jumped 3.9 per cent to close at 542.35 points, the largest one-day increase since March, 2012. The HNX Index on the Ha Noi Stock Exchange rose 3.4 per cent to end at 76.35 points and has gained 4.5 per cent in the past two sessions.

Global oil prices yesterday slid after the state-owned Saudi Arabia Oil Company signaled it would not cut production. US benchmark crude West Texas Intermediate (WTI) and London-traded Brent crude lost 3.6 per cent and 3.5 per cent, respectively, to trade at nearly US$31 a barrel.

However, the WTI price has risen nearly 17 per cent since it touched a twelve-year low at $26.55 a barrel last Wednesday, and Brent crude price has gained 11.4 per cent from its twelve-year low of $27.88 hit on the same Wednesday.

The energy sector surged 4.4 per cent to extend gains from a jump of 3.1 per cent on Friday. Energy stocks that made gains included PetroVietnam Drilling and Well Services Corporation (PVD), which surged 6.7 per cent, and PetroVietnam Technical Services Corporation (PVS), which jumped nearly 10 per cent.

In addition to higher oil prices, PetroVietnam Gas Corporation (GAS) jumped 6.9 per cent and fuel dealer Petroleum Gas Corporation (PGC) was up 1.9 per cent after the two firms reported profits during last year.

Meanwhile, investors were upbeat after the European Central Bank and Japan's central bank signaled they may implement stimulus measures in the near future.

The stock markets received a strong boost from the banking sector with Vietcombank (VCB) jumping 5.3 per cent, and the Bank for Investment and Development of Vietnam (BID) and Vietinbank (CTG) surging 6.8 per cent and 6.7 per cent, respectively.

Yesterday, Viet Nam's central bank raised its reference mid-point rate for exchange trading band by VND2 to trade VND21,910 for a US dollar. The mid-point rate has risen VND20 since the beginning of the year.

Other stocks that also helped push the markets higher included dairy firm Vinamilk (VNM), which gained 3.5 per cent, and agricultural firm Hoang Anh Gia Lai JSC (HAG), which rose 6.3 per cent. HAG also made gains after Viet Nam's central bank denied rumours that the bank was investigating the company.

Both local bourses traded more than 211 million shares worth nearly VND2.9 trillion ($128.5 million), an increase of nearly a fifth from last week's daily trading value and higher than last year's daily trading value. — VNS

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