09/04/2017 08:57 GMT+7 Email Print Like 0

Oil price increases help pull VN Index up

Hanoi, April 8 (VNA) - Vietnam's benchmark VN Index closed up on April 7, boosted by the energy sector on positive movement of oil prices.

The benchmark index on the HCM Stock Exchange was up 0.7 percent to close at 727.95 points, reversing from April 6's decline of 0.1 percent.

April 7's increase also helped the VN Index finish 0.8 percent higher than the previous week’s closing level.

Market trading liquidity rose strongly from April 6 with nearly 230 million shares traded, worth 5.36 trillion VND (238.47 million USD).

Energy stocks were the centre of attention on April 7 as their performances were boosted by the rally of oil prices.

Brent crude rose 0.7 percent to trade at a one-month high of 55.26 USD a barrel, totalling a five-day rally of 4.6 per cent since March 31.

The two listed energy firms on the southern bourse, PetroVietnam Gas (GAS) and PetroVietnam Drilling and Well Services (PVD), gained 4.4 percent and 2 percent, respectively.

The banking sector was also positive on April 7 with strong gains in the shares of Eximbank (EIB) and Sacombank (STB). EIB jumped 3.4 percent and STB hit its daily trading limit of 6.9 percent.

Eximbank has released its documents for the coming annual shareholder meeting, in which the bank said it would consider selling all of its 165 million shares or 8.76 percent stake in Sacombank.

The southern bourse was also boosted by other large-cap stocks such as brewer Sabeco (SAB), Faros Construction Corp (ROS), dairy producer Vinamilk (VNM) and consumer goods company Masan (MSN).

Plastic producers, IT firms and seafood companies also performed well.

“The VN Index has got over the level of 725 points, however, the gains are not sustainable as declining stocks outnumbered gaining ones,” BIDV Securities Corp (BSC) said in a note.

It is unlikely that the benchmark index can extend its gains further, BSC said, adding that investors should be cautious and carefully observe the movements of macroeconomic conditions and global markets.

The HNX Index on the Hanoi Stock Exchange fell 0.6 percent to finish at 90.15 points. The northern market index has dropped total 1.1 percent in the last two days.

More than 47 million shares were exchanged on the northern bourse, worth 651.4 billion VND.