Higher oil drives VN stocks up

A photo of an investor at Saigon Securities Incorporation's trading floor. Stocks rose for a second day on both exchanges on higher investor confidence. - VNS Photo Doan Tung

The benchmark VN Index on the HCM Stock Exchange added 0.4 per cent to close at 579.26 points, rising 0.9 per cent in the last two trading days.

The HNX Index on the Ha Noi Stock Exchange edged up 0.7 per cent to finish at 80.56 points. The northern index increased by 1.2 per cent during the last two sessions.

Investor confidence improved after the US central bank on Wednesday night decided to keep interest rates stable, reduced the number of rate hikes for this year and projected an interest rate of 0.9 per cent at the end of this year, down 0.5 percentage point, Bao Viet Securities Corporation (BVSC) wrote in its daily report.

Higher investor confidence lifted property companies, insurance firms and metal producers yesterday, BVSC said.

Among property firms, Vingroup JSC (VIC) was up 0.9 per cent, Kinh Bac City Development Share Holding Corporation (KBC) edged up 0.8 per cent and HCM City Infrastructure Investment JSC (CII) grew 0.4 per cent.

Insurance stocks also made gains. Bao Viet Holdings (BVH) rose 0.9 per cent, BIDV Insurance Corporation (BIC) increased by 0.4 per cent and PVI Holdings (PVI) inched up 0.3 per cent.

Among metal producers, Hoa Sen Group (HSG) gained 1.4 per cent, Hoa Phat Group JSC (HPG) was up 0.3 per cent and Vicostone JSC (VCS) rose 4.5 per cent.

In addition, global oil prices yesterday advanced for a second day as US output fell and stockpiles rose slowly.

US benchmark crude West Texas Intermediate (WTI) gained 1.8 per cent to trade at US$39.16 a barrel, rising 7.8 per cent in the last two sessions.

London-traded Brent crude added 1.6 per cent to trade at nearly $41 a barrel, a jump of 5.8 per cent over two days.

Strong gains in oil prices lifted the local energy sector with PetroVietnam Gas Corporation (GAS), and PetroVietnam Drilling and Well Service Corporation (PVD) jumping 4.5 per cent and 3.9 per cent, respectively, while PetroVietnam Technical Service Corporation (PVS) was up 2.4 per cent.

On the opposite side, banks and brokerage companies weighed on the markets as Vietcombank (VCB) lost 1.2 per cent, the Asia Commercial Bank (ACB) was down 0.6 per cent, HCM City Securities Corporation (HCM) fell 0.7 per cent and Saigon Securities Incorporation (SSI) dropped 0.5 per cent.

Both local exchanges traded more than 235 million shares worth VND3.32 trillion ($147.8 million), an increase of one-fifth from Wednesday's trading value.