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 bystrong gains of oil stocks after global oil prices recorded the strongest monthof the year.
On the Ho Chi Minh StockExchange, 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 themarket up with the two biggest listed oil companies, PV Gas (GAS) andPetroVietnam Drilling and Wells Service (PVD), advancing 2.6 percent and 6.8 percent,respectively.
PVD was among the mostactive stocks on the southern bourse with more than 8 million shares beingtraded, despite its negative earnings in the second quarter. The companyreported a loss of around 45 billion VND (16.7 million USD) in the secondquarter, adding up to a total loss of 246 billion VND in the first half of thisyear.
The firm attributed thepoor result to a 34-40 percent decline in the lease of drilling platforms overthe past three months.
Global oil pricesextended gains on July 31, ending the strongest month of the year, boosted byexpectations of US sanctions against Venezuela’s oil sector and waning concernsover the supply in major oil markets.
Brent crude edged up 0.3percent to settle at 52.65 USD while the US light crude oil rose nearly 1percent to trade at 50.17 USD a barrel.
Expansion of other bluechips 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 contributedto the market uptrend.
These shares are amongthe 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) andVinamilk (VNM) dropped between 0.4 percent and 2 percent.
Overall market breadthwas negative with 159 stocks declining, 124 advancing and 58 closing unchanged.
On the Hanoi StockExchange, the HNX-Index edged up 0.14 percent to 101.33 points.
According to BIDVSecurities Co, the market is exposed to a short-term correction risk in thecoming sessions after a six-day trading rally due to selling pressure of stocksthat have gained significant profit.
Liquidity dropped with atotal of 280 million shares worth 4.6 trillion VND (201.3 million USD) beingtraded in the two markets, down 19 percent in volume and 15 percent in valuecompared to July 31’s figures.-VNA
VNA
