Oil drags stocks down for fifth consecutive day

An official receives trading orders at Ha Noi Stock Exchange. Declining oil prices yesterday pulled the market down for a fifth day. - VNS Photo Truong Vi

The benchmark VN Index on the HCM Stock Exchange edged down 0.4 per cent to close at 673.61 points, totaling a five-day decline of 2.2 per cent.

The HNX Index on the Ha Noi Stock Exchange fell 0.7 per cent to end at 82.26 points. The northern market index has lost 3.8 per cent during the same period.

The VNXAll Index, the common index between the northern and the southern bourses, yesterday was down 0.4 per cent to finish at 980.57 points.

The energy sector was the worst hit yesterday, dragging the market down as oil prices declined for a third-day after Russia was speculated to not join the output cut deal, which was expected to happen in November between the Organisation of Petroleum Exporting Countries (OPEC) and other oil producers.

On global trading, US crude West Texas Intermediate (WTI) slashed 1.5 per cent to trade at US$49.19 a barrel, down 3.3 per cent in total since last Friday. London-traded Brent crude was traded slightly below $50 a barrel, falling a total 3.5 per cent in three days.

In the energy sector, PetroVietnam Gas Corp (GAS) edged down 0.9 per cent, PetroVietnam Technical Services Corp (PVS) slid 2.5 per cent, and PetroVietnam Mud Drilling Corp (PVC) slipped 2.1 per cent.

Bank stocks were also negative. Of the nine listed banks, only the small-cap National Citizen Commercial Joint Stock Bank (NVB) advanced, while other larger stocks such as Vietcombank (VCB), Sai Gon-Ha Noi Bank (SHB) and Vietinbank (CTG) fell between 0.3 per cent and 3.6 per cent.

Securities firms were also traded in the negative territory. Leading brokerage companies such as Bao Viet Securities Corp (BVS), HCM Securities Corp (HCM), Sai Gon Securities Inc (SSI) and VNDirect Securities Corp (VND) dropped between 0.8 per cent and 2.5 per cent.

On the bright side, a five-day losing streak triggered investors to try bottom-picking, which "helped the VN Index to stay above the 673-point level given that the market trading liquidity was very low," BIDV Securities Corp (BSC) wrote in a note.

Nearly 141.5 million shares were traded yesterday worth VND2.05 trillion ($91.4 million), a decrease of nearly 22 per cent from Tuesday's trading value.