Market slide ends on oil recovery

Photo shows investors at the Hà Nội Stock Exchange. The HNX Index yesterday bounced back 0.5 per cent from a five-day loss of 3.5 per cent.- Photo Vietnamplus

The benchmark VN Index on the HCM Stock Exchange went up 0.5 per cent to close at 676.90 points, putting a dent in a five-day decline of 2.2 per cent.

The HNX Index on the minor Hà Nội Stock Exchange also added 0.5 per cent to end at 82.69 points after losing a total 3.8 per cent during the same period.

The VNXAll Index, the common index between the southern and northern bourses, was up 0.4 per cent following a three-day fall of 1.9 per cent.

The energy sector led the market up yesterday after oil prices rebounded slightly on a drop in US crude inventories.

US crude West Texas Intermediate (WTI) advanced 0.4 per cent to trade at US$49.38 a barrel, recovering from a loss of 3.3 per cent since Friday.

London-traded Brent crude added 0.6 per cent to trade at $50.27 a barrel, following a three-day decrease of 3.5 per cent.

Local energy stocks also rose slightly. PetroVietnam Gas Corp (GAS) inched up 0.1 per cent, PetroVietnam Technical Services Corp (PVS) gained 1.5 per cent, and PetroVietnam Construction Corp (PVX) jumped 3.7 per cent.

Rubber companies’ stocks performed well, including Phước Hòa Rubber JSC (PHR), Đồng Phú Rubber JSC (DPR) and Tây Ninh Rubber JSC (TRC) as “the rubber price increased by about 70 per cent year on year and these companies will likely report higher earnings for the third quarter,” BIDV Securities Corp (BSC) said in a note.

Property companies’ shares also performed well yesterday, including Hòa Bình Construction and Real Estate Corp (HBC), Tân Tạo Investment and Industry Corp (ITA), Sài Gòn Thương Tín Real Estate Corp (SCR) and Vingroup JSC (VIC).

HBC added 2.2 per cent, ITA rose 2.1 per cent, SCR was up 1.1 per cent and VIC edged up 0.8 per cent.

On the negative side, banks continued to perform negatively with only Vietcombank (VCB) and Asia Commercial Bank (ACB) making gains, while Vietinbank (CTG), Sacombank (STB), Bank for Investment and Development of Việt Nam (BID) and Eximbank (EIB) declining.

“Market trading liquidity continued to slide, proving that yesterday’s recovery would not likely extend in coming sessions,” BSC said.

More than 120.4 million shares were traded yesterday, a decline of nearly 15 per cent from Wednesday. Trading value was VNĐ1.95 trillion ($86.9 million), falling nearly 5 per cent from the previous session.