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VN shares lower amid oil plunge
Vietnamese shares yesterday pulled back sharply from Wednesday gains on both local bourses as energy stocks were hurt by oil prices hitting new 11-year lows.
The benchmark VN Index on the HCM Stock Exchange fell 1.6 per cent to close at 565.36 points and the HNX Index on the Ha Noi Stock Exchange dropped 2 per cent to finish at 77.15 points.
The US benchmark crude West Texas Intermediate (WTI) yesterday lost 2.4 per cent to trade at a new eleven-year-low of US$33.17 a barrel. The WTI crude price has fallen nearly 10 per cent in the past three days.
The fall of global oil prices was caused by a slowdown of the Chinese economy, the dispute between Iran and Saudi Arabia, who are the two biggest crude exporters in the world, and a stronger US dollar in global markets.
The energy sector index suffered from the sharp fall of WTI crude and retreated by 4.3 per cent, led by PetroVietnam Gas Corporation (GAS), which dropped 5 per cent, PetroVietnam Drilling and Well Services Corporation (PVD), which slumped by 6.9 per cent, and gas dealer Petrolimex Gas Corporation (PGC), which was down 0.9 per cent.
Viet Nam's stocks declined as investors tried to sell their assets after receiving negative news from political issues in the Middle East region and from North Korea, Sai Gon Ha Noi Securities Corporation (SHS) wrote in a report.
Other bad news that affected local markets included the second shutdown of Chinese stock markets this week and a depreciation of Chinese yuan to a five-year low, SHS said.
Large-cap stocks continued to be sold strongly during yesterday's session. Dairy firm Vinamilk (VNM) lost 1.6 per cent, while insurer Bao Viet Holdings (BVH) and brokerage company Sai Gon Securities Incorporate (SSI) each fell 2.8 per cent.
A weaker Vietnamese dong also weighed on banks after Viet Nam's central bank raised the reference point for its exchange trading band by VND12 to trade VND21,919 for a US dollar.
The banking sector index lost 1.9 per cent, led by Vietcombank (VCB), which was down 1.2 per cent, Vietinbank (CTG), which declined by 1.1 per cent and the Bank for Investment and Development of Viet Nam (BID), which dropped sharply by 4.5 per cent.
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