Investors at ACB Securities Company in Hanoi (Source: VNA)
Hanoi (VNS/VNA) –
Shares continued to climb on August 1 on the two stock exchanges, backed by
strong gains of oil stocks after global oil prices recorded the strongest month
of the year.
On the Ho Chi Minh Stock
Exchange, the VN-Index increased 0.42 percent to close at 786.61 points,
topping the former nine-year high of 782.65 points of July 6.
Energy stocks drove the
market up with the two biggest listed oil companies, PV Gas (GAS) and
PetroVietnam Drilling and Wells Service (PVD), advancing 2.6 percent and 6.8 percent,
respectively.
PVD was among the most
active stocks on the southern bourse with more than 8 million shares being
traded, despite its negative earnings in the second quarter. The company
reported a loss of around 45 billion VND (16.7 million USD) in the second
quarter, adding up to a total loss of 246 billion VND in the first half of this
year.
The firm attributed the
poor result to a 34-40 percent decline in the lease of drilling platforms over
the past three months.
Global oil prices
extended gains on July 31, ending the strongest month of the year, boosted by
expectations of US sanctions against Venezuela’s oil sector and waning concerns
over the supply in major oil markets.
Brent crude edged up 0.3
percent to settle at 52.65 USD while the US light crude oil rose nearly 1
percent to trade at 50.17 USD a barrel.
Expansion of other blue
chips such as brewery Sabeco (SAB) with a rise of 3.4 percent, Vietcombank
(VCB) up 1.7 percent and Petrolimex (PLX) up 0.32 percent largely contributed
to the market uptrend.
These shares are among
the top 10 largest shares by market value on the HCM Stock Exchange.
On the defensive side,
despite positive earnings reports, Vietinbank (CTG), Military Bank (MBB) and
Vinamilk (VNM) dropped between 0.4 percent and 2 percent.
Overall market breadth
was negative with 159 stocks declining, 124 advancing and 58 closing unchanged.
On the Hanoi Stock
Exchange, the HNX-Index edged up 0.14 percent to 101.33 points.
According to BIDV
Securities Co, the market is exposed to a short-term correction risk in the
coming sessions after a six-day trading rally due to selling pressure of stocks
that have gained significant profit.
Liquidity dropped with a
total of 280 million shares worth 4.6 trillion VND (201.3 million USD) being
traded in the two markets, down 19 percent in volume and 15 percent in value
compared to July 31’s figures.-VNA