Low crude prices keep stocks down

Screens are shown at Vietcombank Securities Company. Vietcombank, listed as VCB on the HCM Stock Exchange, ended flat yesterday.-VNS Photo Truong Vi

The benchmark VN Index on the HCM Stock Exchange inched down 0.1 per cent to end at 648.59 points. The southern market index has fallen 3.7 per cent in the past six sessions.

The HNX Index on the Ha Noi Stock Exchange dropped 0.6 per cent to close at 83.52 points. The northern market index has decreased by 4.1 per cent in the last six days.

The energy sector weighed on investors' sentiment yesterday after oil prices declined for a fourth trading day.

US crude West Texas Intermediate (WTI) lost 0.9 per cent to trade at US$42.74 a barrel and London-traded Brent crude edged down 0.5 per cent to trade at $44.49 a barrel, totalling a four-session fall of 4.9 per cent and 5.7 per cent, respectively.

The largest energy stocks all declined. PetroVietnam Gas Corp (GAS) plunged 4.8 per cent, while the others such as PetroVietnam Mud Drilling Corp (PVC) and PetroVietnam Technical Services Corp (PVS) fell between 1.8 per cent and 3 per cent.

Other large-cap stocks on the two local exchanges yesterday continued to decline, including consumer goods producer Masan Group (MSN), Joint Stock Commercial Bank for Investment and Development of Viet Nam (BID), Tien Phong Plastic JSC (NTP) and Asia Commercial Bank (ACB).

MSN was down 0.7 per cent, BID slid 0.6 per cent, NTP fell slightly by 0.3 per cent and ACB dropped 1.1 per cent.

"Investors remained cautious on the market's current slowdown and chose to stay off trading," Sai Gon-Ha Noi Securities Corp (SHS) wrote in its daily report.

Weak investor sentiment resulted in low trading liquidity. Local exchanges had more than 143 million shares in trading worth VND2.4 trillion ($106.7 million), a quarter lower in value from last week's daily trading figures.

Investors also turned their focus on some listed companies that have given positive news on their business, SHS said. Those firms are Viet Nam Dairy Products JSC (VNM), steel producer Hoa Phat Group (HPG) and fish exporter Hung Vuong Corp (HVG).

VNM rose 1.9 per cent after foreign investors purchased half of the stocks that were traded on the market. VNM last week announced it lifted the limit of ownership for foreign investors.

HPG jumped 3.4 per cent and HVG surged 6.9 per cent after the two companies reported higher year-on-year profits for the first half of this year.

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