Oil and gas stocks lifted the market yesterday as global oil prices surged after the Organisation of Petroleum Exporting Countries (OPEC) members finally reached a consensus on production cuts.

However, persistent net selling by foreigners continued to weigh on the local market.

The benchmark VN-Index, the measure of 319 stocks on the HCM Stock Exchange inched up 0.2 per cent to close at 666.5 points. The gauge slipped 1.5 per cent in November.

On the Ha Noi Stock Exchange, the HNX-Index tracking 375 stocks increased 1.1 per cent to end at 81.6 points. The Index lost 5.1 per cent last month.

Oil and gas stocks shored up the market, with major shares such as PV Gas (GAS), PetroVietnam Drilling and Wells Service (PVD), PetroVietnam Drilling Mud (PVC), PetroVietnam Coating (PVB) and Petroleum Equipment Assembly & Metal Structure (PXS) hitting the daily limit of 7 per cent and 10 per cent in HCM City and Ha Noi exchanges, respectively.

Oil future contracts gained more than 9 per cent on Wednesday after the 14-member OPEC decided to cut daily production for the first time in eight years by 1.2 million barrels a day, to a ceiling of 32.5 million barrels. The key non-OPEC oil producers have agreed to cut production by 600,000 barrels a day.

According to some securities companies, OPEC’s oil production cut and rising demand for energy in winter in the United States are likely to support oil prices in the future.

However, this new policy could take some time to impact business performance, although the domestic oil industry is expected to thrive next year.

“Market movements reflect investors’ expectations. With the bright prospect of rising oil prices, energy stocks are likely to soar in the last trading days of the year,” said Hoang Thanh Tung, a stock analyst at Royal Securities Co.

At the other end of spectrum, the biggest listed stock Vinamilk (VNM) lost 2 per cent after two-day rally under foreign selling pressure. Its shares continued to top the most-sold list by foreign investors yesterday for a net value of VND101.4 billion (US$4.5 million). Foreigners offloaded VNM shares for a total value of VND604 billion in November.

They were also net sellers in the two markets last month, for a total value of VND1.6 trillion.

Liquidity decreased with 173.2 million shares worth VND3.2 trillion ($88 million) traded in the two markets, down 10.8 per cent in volume and 11.1 per cent in value compared to Wednesday. — VNS