06/03/2016 10:48 GMT+7 Email Print Like 0

Higher rubber prices boost Vietnam’s stocks

Hanoi, March 5 (VNA) - Vietnamese shares advanced on both local trading bourses on March 4 after the previous day’s mixed session as rubber stocks rose on higher rubber prices in global trading.

The benchmark VN Index on the HCM Stock Exchange added 0.6 percent to close at 573.65 points, rallying 2.6 percent over the last four days. The southern index has risen 1.3 percent this week.

The HNX Index on the Hanoi Stock Exchange rebounded 0.5 percent after a slight fall on March 3 to finish at 79.65 points. The northern index rose by 0.7 percent from the previous week.

Natural rubber producers lifted the markets because global rubber prices had increased strongly since the beginning of this year, Bao Viet Securities Corporation (BVSC) wrote in a report.

Rubber prices on the Tokyo Commodity Exchange (TOCOM) increased by 2.9 percent to trade at 169 yen per kilogramme on March 4, reaching a two-and-a-half-month high. Rubber prices on TOCOM have improved by nearly 9 percent this week, the highest growth since May 2015.

BVSC said this week's gain in prices for rubber, a crude-made product, came after crude prices recovered strongly this week on expectations that the Organisation of Petroleum Exporting Countries (OPEC) and Russia would reach an agreement to cut their production.

Among natural rubber stocks, Quang Nam Rubber Investment JSC (VHG), Tay Ninh Rubber JSC (TRC), Dong Phu Rubber JSC (DPR) and Phuoc Hoa Rubber JSC (PHR) surged 6.1 percent, 6.9 percent, 6.8 percent and 6.5 percent, respectively.

The insurance sector also helped lift both markets, led by BIDV Insurance Corporation (BIC), which gained 2.3 percent; Bao Minh Insurance Corporation (BMI), which rose by 2.7 percent; and PVI Holdings (PVI), which added 2.6 percent.

Both local markets traded more than 188 million shares worth 2.66 trillion VND (119.7 million USD), an increase of 3.5 percent from the previous day's trading value.
VNA/VNP