Oil stocks lead market for second day

Oil stocks lead market for second day

Gas tanks and piles of PV Gas. Oil and gas stocks lifted market yesterday. - Photo sggp.org.vn

HÀ NỘI – Shares rose for second day on Wednesday, boosted by strong gains in the oil and gas sector and investors’ continued faith in optimistic market prospects.

On the HCM Stock Exchange, the VN-Index added 0. 四 per cent to close the session at  六 七 四. 七 points, lifting the two-day rally to  一. 五 per cent.

On the Hà Nội Stock Exchange, the HNX-Index slowed down its growth to 0. 二 per cent on Wednesday to settle at  八 一. 五 points. The gauge gained  一. 六 per cent in the previous session.

Despite the global oil price slump, domestic oil and gas stocks advanced and lifted the market with most of the large-cap oil companies advancing.

PV Gas (GAS) and PetroVietnam Drilling and Wells Service (PVD), two of the top  三0 largest shares by market value and liquidity on the HCM City’s bourse, grew  二. 三 per cent and  二. 九 per cent, respectively.

Others, including PetroVietnam Drilling Mud (PVC), PetroVietnam Technical Services (PVS) and Petroleum Equipment Assembly Metal Structure (PXS), increased between  一. 三 per cent and  三 per cent.

Global oil prices fell from the  一 八-month peak on Tuesday following the rise of the US dollar. West Texas Intermediate (WTI) oil closed down  二. 六 per cent to US$ 五 二. 三 三 per barrel, while Brent crude was down  二. 四 per cent to $ 五 五. 四 七 per barrel.

Overall market conditions were negative, however, with  一 九 一 stocks rising,  二 二0 falling and  二 八 八 closing flat.

According to analysts at Vietstock Finance Co, profit-taking sales began to appear and negatively affected market rises. This pressure will likely rise in the next sessions, which could push the market down.

“However, cash flows remain positive, so investors should not be too cautious and can take this opportunity to restructure portfolios,” they wrote in a market report.

The market trend will likely stay positive in the medium term, but the VN-Index needs to surpass the resistance level of  六 八0 points to escape from the short-term recession, Trần Hải Yến, analyst at Bảo Việt Securities Co wrote in a note.

Liquidity increased slightly on Wednesday with  一 三 七 million shares worth a combined VNĐ 二. 四 trillion ($ 一0 五. 七 million) traded in the two markets, up  一 七 per cent in volume and  九 per cent in value compared to Tuesday’s levels.

Foreign investors remained net buyers on the two exchanges with total net buy value of VNĐ 一 一 七 billion, an eight-fold increase over Tuesday’s level. – VNS