Vietnam stocks suffer after oil price drop

Vietnamese shares finished lower yesterday, erasing gains in the earlier session, as energy firms extended losses following another drop in crude prices.- VNA/VNS Photo

The benchmark VN Index on the HCM Stock Exchange retreated 0.3 per cent to end at 625.11 points after rising 0.6 per cent in the previous two trading days.

The HNX Index on the Ha Noi Stock Exchange inched down 0.2 per cent to close at 84.15 points, extending losses for a second day.

Global oil prices fell for a sixth day, the longest losing streak in four months, as investors worried about the possibility that Britain may decide to quit the European Union on June 23, as well as the rebound in Canada's production.

US crude West Texas Intermediate (WTI) and London-traded Brent crude slipped 1.5 per cent each to trade at US$47.29 and $48.23 a barrel, respectively.

US crude has fallen 7.7 per cent in the last six days, and Brent crude has dipped 8.2 per cent during the same time.

On local markets, PetroVietnam Gas Corp (GAS), PetroVietnam Drilling and Well Service Corp (PVD), PetroVietnam Coating Corp (PVB) and PetroVietnam Mud Drilling Corp (PVC) were among the biggest decliners, losing between 2.4 per cent and 4.8 per cent.

Additionally, most listed banks continued to decline. Banks that had the strongest falls were Viet Nam Joint Stock Commercial Bank for Industry and Trade (CTG), Sai Gon Thuong Tin Commercial Joint Stock Bank (STB) and Sai Gon-Ha Noi Bank (SHB) with the loss of 1.1 per cent, 0.9 per cent and 1.6 per cent, respectively.

On a positive note, investor confidence was bolstered by the US central bank's decision to delay an increase in interest rates after a two-day meeting, Bao Viet Securities Corp (BVSC) wrote in its daily report.

"The US central bank's decision came after recent economic data was less than expected, and Britain will likely remove its membership from the European Union later this month," BVSC said.