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VN stocks down on lower oil prices
Vietnamese shares fell on both local exchanges yesterday as energy stocks weighed on the markets and as oil prices continued to fall.
The benchmark VN Index on the HCM Stock Exchange retreated 0.7 per cent to close at 574.04 points, ending a rally of 1.1 per cent over the previous three sessions.
The HNX Index on the Ha Noi Stock Exchange dropped 0.5 per cent to finish at 79.63 points, extending its decline of 0.5 per cent for a second day.
Local energy stocks declined as oil slid for a second day after Iran appeared unlikely to join a coalition led by Russia and Saudi Arabia on a production freeze to bolster prices until the country restores its pre-sanction oil output level.
US benchmark crude West Texas Intermediate (WTI) yesterday lost 2.7 per cent to trade a US$36.18 a barrel, and London-traded Brent crude declined by 2.8 per cent to trade at $38.43 a barrel.
WTI has fallen 6 per cent in the last two days and Brent crude has slipped 4.9 per cent during that period.
Local energy stocks recorded heavy falls during yesterday's session. Among the biggest declines, PetroVietnam Gas Corporation (GAS) slumped 3.6 per cent, PetroVietnam Drilling and Well Service Corporation (PVD) slid 4.9 per cent, and PetroVietnam Mud Drilling Corporation (PVC) dropped 3.9 per cent.
Energy stocks will likely continue to drag the markets down tomorrow unless there is positive information that brings oil prices up again, which is unlikely to happen, Sai Gon-Ha Noi Securities Corporation (SHS) wrote in its daily report.
Meanwhile, low investor confidence helped push financial stocks into negative territory as investors waited for the US central bank's meeting this week, which is expected to keep interest rates unchanged and provide a clear schedule for rate hikes in the future.
Among financial stocks, Bao Minh Insurance Corporation (BMI) lost 2.4 per cent, BIDV Insurance Corporation (BIC) fell 2.5 per cent, the Bank for Investment and Development of Viet Nam (BID) slid 1.2 per cent, Sacombank (STB) dropped 1.9 per cent, and HCM City Securities Corporation (HCM) lost 1.6 per cent.
The property sector declined on forecasts that the revised Circular 36, which aims to reduce the limited loans a bank can make, will create negative effects for property developers.
The property sector was led down by FLC Group (FLC), Vingroup JSC (VIC), Sao Mai Group Corporation (ASM), and Phat Dat Real Estate Development JSC (PDR), which fell 1.5 per cent, 0.9 per cent, 1.1 per cent and 0.8 per cent, respectively.
Local markets combined traded nearly 226.4 million shares worth VND3.2 trillion ($143 million), a decrease of 45 per cent from Monday's trading value. – VNS
Vietnamese shares fell on both local bourses after oil prices slid further, pulling energy stocks down with investor confidence low ahead of the US Fed's meeting this week.
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