Investors track share movements at Sai Gon Securities Inc's office in Ha Noi. The benchmark VN Index yesterday hit a new eight-year high as investors bet on higher corporate earnings in the second quarter. — VNS Photo Doan Tung

HA NOI (Biz Hub) — Vietnamese shares rose higher yesterday as investor confidence was bolstered by higher oil prices and expectations for better corporate earnings in the past three months.

The benchmark VN Index on the HCM Stock Exchange advanced 1.2 per cent to finish at 647.96 points, reaching a new eight-year high. The southern market index has jumped 4.4 per cent in the last six sessions.

The HNX Index on the Ha Noi Stock Exchange went up 0.8 per cent to close at 85.81 points, totaling a two-day gain of 1.3 per cent. The northern market index has increased by 2.7 per cent in five trading days.

The energy sector was lifted as crude prices rose for a second day on global exchanges. London-traded Brent crude edged up 0.5 per cent to trade at US$50.62 a barrel, making a two-day gain of 1.9 per cent.

US crude West Texas Intermediate (WTI) added 0.4 per cent to trade at $49.20 a barrel. US crude has increased by 1.8 per cent in the last two sessions.

Among local energy stocks, PetroVietnam Gas Corp (GAS) advanced 1.5 per cent, PetroVietnam Drilling and Well Service Corp (PVD) was up 1 per cent, and PetroVietnam Coating Corp (PVB) went up 0.5 per cent.

Investors also bet on companies that are expected to have higher earnings during the last quarter of the year, including steel producers, property developers and securities companies.

In the steel production industry, Hoa Sen Group (HSG) and Nam Kim Steel JSC (NKG) jumped 4.8 per cent each, Viet Nam-Italy Steel JSC (VIS) and Tien Len Steel Group JSC (TLH) surged 6.7 per cent and 6.6 per cent, respectively.

The real estate sector was driven up by Sai Gon Thuong Tin Real Estate JSC (SCR), FLC Group (FLC), Tan Tao Industrial Investment JSC (ITA) and An Duong Thao Dien JSC (HAR).

Securities companies were the strongest gainers. HCM City Securities Corp (HCM), Sai Gon Securities Inc (SSI), VNDirect Securities Corp (VND) and Sai Gon-Ha Noi Securities Corp (SHS) surged between 6.8 per cent and 9.8 per cent.

Yesterday, the central bank cut its daily reference mid-point rate by VND7 to VND21,858 for US dollar. Local banks were able to trade the Vietnamese dong and the dollar within a trading band of 3 per cent on either side of the mid-point rate.

Investors on both local bourses traded nearly 196 million shares worth VND3.9 trillion ($174 million), an increase of one-third from Friday's trading value. — VNS