Thu. Feb 22nd, 2024

Fuel price hike drives stocks down

HA NOI (VNS)— The unexpected news of a fuel price hike late on Thursday weighed on the stock markets yesterday as investors sold off in the morning session, but HCM City stocks managed to rally in the afternoon.

The Ministry of Finance and the Ministry of Industry and Trade announced on Thursday afternoon they had allowed petrol companies to increase fuel retail prices.

As a result, petrol surged to more than VND24,500 (US$1.17) per litre, breaking the previous record of VND23,800 set in April 2012.

Avoiding comments on the fuel price increase, FPT Securities Co analysts said investors had ignored the market regardless of good or bad news. “There aren’t any signs of a rally as market liquidity remains low,” they said.

In addition, the current market conditions are unsuitable for speculators.

On the HCM City Stock Exchange, the VN-Index added 0.08 per cent compared to the previous day, standing at 491.04 points.

The VN30, tracking the top 30 shares by market capitalisation and liquidity, managed to advance by 0.07 per cent to 552.28 points, although most blue chips tumbled or closed unchanged.

In spite of the price hike, shares in Petrolimex subsidiaries did not follow the rise, with Petrolimex Gas Corporation (PGC) falling 1 per cent and Petrolimex Tanker Co (PJT) finishing the session unchanged.

Trading was sluggish with value of trades dropping 33 per cent from that seen the previous day, reaching VND600.34 billion ($28.5 million).

On the Ha Noi Stock Exchange, the HNX-Index slid 0.1 per cent to 60.25 points. Trading value was the same as on Thursday, totalling VND277 billion ($13.1 million).

The HNX30, comprised of the northern bourse’s leading shares, bucked the Ha Noi market’s trend to rally 0.11 per cent to 114.11 points.

Foreign investors were net buyers again, but there was a big difference in value between the two exchanges, hitting VND30.88 billion ($1.4 million) in HCM City and only VND765.4 million ($36,400). — VNS

By vivian