VN stocks up further, driven by oil

Wednesday, Nov 23, 2016 08:41

Investors on the Sai Gon-Ha Noi Securities trading floor. The company’s shares rose 1.9 per cent yesterday. — Photo

Shares rose higher yesterday, driven by oil and gas producers and banking-financial companies, while listed firms with positive 10-month earnings also bolstered investor confidence.

The benchmark VN Index on the HCM Stock Exchange rose 1.1 per cent to close at 681.91 points, rising a total 1.3 per cent after two sessions.

The HNX Index on the Ha Noi Stock Exchange added 0.4 per cent to end at 81.03 points, up 0.5 per cent from last Friday.

Oil and gas producers continued to be the strongest gainers as members of the Organisation of Petroleum Exporting Countries (OPEC) displayed a united stand at a meeting in Vienna to cut their production in order to restore the market’s stability.

The feasibility of an output cut agreement was strengthened last week when Iran and Iraq, the two exporters that once rejected co-operation, signaled they would support OPEC’s move to stabilise the oil market. Russia, a big non-OPEC producer, was also considering a six-month production cut to help improve its energy sector.

The news sent both Brent crude and US crude West Texas Intermediate (WTI) to rally for a third day. Both crude prices were up 0.5 per cent each to trade at US$49.12 and $48.47 a barrel, respectively.

Brent crude has risen 5.7 per cent since last Thursday and WTI has jumped 6.5 per cent during the same time.

Of the local energy stocks, the biggest gainers were PetroVietnam Drilling and Well Services Corp (PVD), PetroVietnam Transportation Corp (PVT) and PetroVietnam Mud Drilling Corp (PVC), advancing 3.4 per cent, 3.3 per cent and 2.4 per cent, respectively.

The financial-banking sector also supported the market’s upward trend, led by Vietcombank (VCB), Asia Commercial Bank (ACB), insurer Bao Viet Holdings (BVH), Bao Viet Securities Corp (BVS), Sai Gon-Ha Noi Securities Corp (SHS) and Sai Gon Securities Inc (SSI).

Vietcombank announced on Monday that it would issue more than 932 million shares to increase its capital at the end of this month, including more than 213 million transferrable shares.

The banking sector has performed well in the last two sessions as investors expected a new Government directive allowing commercial banks to continue issuing short-term foreign currency loans to borrowers, boosting domestic business at year-end.

Firms with positive 10-month earnings also raised investor sentiment. Mobile World Investment Corp (MWG) yesterday jumped 5 per cent after releasing a report showing the company’s revenue and post-tax profit increased by 76 per cent and 96 per cent from last year’s figures.

Market trading liquidity increased from Monday, with more than 150.5 million shares being exchanged, worth nearly VND2.62 trillion ($116.4 million). – VNS

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