Vietnam stocks up amid crude volatility

Investors follow stock transactions at the Saigon Securities Inc in Ha Noi. - VNS Photo Doan Tung

The benchmark VN Index on the HCM Stock Exchange gained 0.9 per cent to close at 542.69 points and the HNX Index on the Ha Noi Stock Exchange rose 1 per cent to end at 76.26 points.

The energy sector lifted local markets after oil prices improved recently from their twelve-year lows.

US benchmark crude West Texas Intermediate (WTI) yesterday fell 3.5 per cent to trade at US$30.34 a barrel, but it has gained more than 14 per cent from its twelve-year low of $26.55 touched a week ago.

London-traded Brent crude lost 2.4 per cent to trade at $31.04 a barrel, however, it has risen more than 11 per cent from a twelve-year low of $27.88 a barrel hit last Wednesday.

Among local energy stocks, PetroVietnam Gas Corporation (GAS) gained 2.8 per cent and has jumped 22 per cent in the last four sessions, PetroVietnam Drilling and Well Services Corporation (PVD) was up 1.4 per cent and has increased by 18 per cent, and PetroVietnam Technical Services Corporation (PVS) was up 2.8 per cent and has improved by 18 per cent.

In addition, investor confidence was bolstered as the US central bank was expected not to raise its lending rate for a second time since December while the 12th National Congress of the Communist Party of Viet Nam was coming to an end, ending uncertainty about the country's future leadership, Bao Viet Securities Corporation wrote in a report.

Insurance firms and banks, including insurer Bao Viet Holdings (BVH), gained 2 per cent, the Bank for Investment and Development of Viet Nam (BID), jumped 4.2 per cent, and Sai Gon-Ha Noi Bank (SHB), rose 1.6 per cent.

Other stocks that also helped lift the market included dairy firm Vinamilk (VNM), which was up 1.7 per cent, and construction company Viet Nam Construction and Import-Export JSC (VCG), which gained 1 per cent.

However, local markets may not extend gains the rest of this week due to the fluctuation of oil prices and the volatility of global stock markets, Sai Gon-Ha Noi Securities Corporation (SHS) wrote in a report.

Both local markets traded more than 170 million shares worth VND2.2 trillion ($98 million), equal to Tuesday's trading value.