Monday,  Oct 22, 2018,21:21 (GMT+7) 0 0
Energy stocks drive VN-Index up
Phuong Thao
Tuesday,  May 15, 2018,14:30 (GMT+7)

Energy stocks drive VN-Index up

Phuong Thao

HCMC – Stocks, especially those in the oil and gas sectors, rallied strongly for the second straight session on May 14.

The VN-Index of the Hochiminh Stock Exchange jumped 22.13 points, or 2.12%, against last Friday at 1,066.98. Turnover stayed low as trading volume and value rose a slight 2% and 5% at nearly 138 million shares and VND4.3 trillion.

Among oil and gas stocks, GAS surged 6.2% at an intraday high of VND118,000 a share and PLX jumped 3.1% at VND66,000 per share. PVD, an oil field drilling firm, also added 2.3% at VND15,450 a share.

Viet Capital Securities Company (VCSC) in a recent report increased its 2018 average oil price forecast from US$65 to US$68 per barrel. As U.S. president Donald Trump announced to withdraw the U.S. from a nuclear deal with Iran, sanctions may be re-imposed on Iran, thus affecting Iran’s oil exports.

This move could squeeze the oil market and push the oil price higher in 2018. Iran is currently the third largest exporter of the Organization of Petroleum Exporting Countries’ (OPEC), it said.

The impact on the oil market over the longer term is still unclear as other participants of the agreement such as Russia, Britain, France, Germany and China might continue to buy Iranian oil. Therefore, VCSC maintains its oil price forecast for 2019-2022, at US$65 in 2019 and 2020 before increasing to US$70 in 2021 and 2022.

“In our energy coverage, we think this will have a positive impact on GAS, a slightly positive impact on PVS and PVD, and is neutral for petroleum transport firm PVT. Meanwhile, it is negative for fertilizer and chemical stock DPM and slightly negative for electricity firms POW and NT2,” the brokerage commented.

Aside from fuel stocks, realty firm VIC contributed significantly to the rally, climbing 6.4% to an intraday high of VND132,000 per share with matching volume of 2.37 million shares. Its retail affiliate VRE went up to its ceiling price of VND48,850 a share with 2.38 million shares traded.

Notably, VND plunged to its floor price of VND23,500 after hitting the upper limit on Friday when leaders of the securities firm confirmed it had little exposure to HomeDirect which has been accused of facilitating payments through its PayDirect platform that permitted online gambling.

The HNX-Index of the Hanoi Stock Exchange gained 0.42% at 123.28 points though gainers still outnumbered losers by 95 to 72. The Hanoi exchange saw its trading volume up against last Friday 11% at 51.1 million shares but value dropped 2.6% at VND615 billion.

Share with your friends:         
Publication Permit No. 321/GP-BTTT issued on October 26, 2007
Deputy Editor-in-Chief: Pham Huu Chuong
Managing Editor: Nguyen Van Thang.
Assistant Managing Editor: Pham Dinh Dung.
Head Office: 35 Nam Ky Khoi Nghia St., Dist.1, Ho Chi Minh City, Vietnam. Tel: (84.28) 3829 5936; Fax: (84.28) 3829 4294.
All rights reserved.