 Shares climb on oil, gas growth
Vietnam News - 8/29/2015 9:57:40 AM
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Shares rose yesterday on the two exchanges, propped up by oil and gas companies' sharp growth.
On the HCM Stock Exchange, the VN-Index extended rises to four days in a row with another gain of 2.71 per cent, closing the session at 570.87 points.Meanwhile, the HNX-Index on the Ha Noi Stock Exchange edged up 1.62 per cent to end at 78.27 points.Oil and gas stocks continued to support the market, as many of these shares hit the daily ceiling trading limit thanks to a strong global oil rebound.PV Gas (GAS ), PetroVietnam Drilling and Wells Service (PVD), and Petroleum Equipment Assembly & Metal Structure (PXS) climbed 7 per cent, the highest growth in a day on the HCM Stock Exchange.Oil shares in Ha Noi's market also jumped, with PetroVietnam Technical Services (PVS), PetroVietnam Drilling Mud (PVC) and PetroViet Nam Coating (PVB) growing by more than 5 per cent each.US crude and Brent oils surged more than 10 per cent on Thursday, their biggest gain in a single day since 2008."After a heavy slump during the past downtrend, oil and gas companies are drawing a lot of bargain hunters," analysts at Sai Gon-Ha Noi Securities Co wrote in a note. "However, oil prices are forecast to be volatile in the coming time, thus there's no solid ground to ensure long-term rises of these shares."According to these analysts, a market rebound after a protracted rout was normal in the context that the impacts of external factors are starting to become subdued."However, after four strong rising sessions, investors should be wise not to chase shares at any cost due to the risk of downward correction, which is rising due to profit-taking selling pressure," they said. Brokerage securities companies also performed well after they received news that the State Securities Commission has approved Saigon Securities Inc (SSI)'s plan to raise its foreign ownership limit to 100 per cent.SSI hit the ceiling trading band of 7 per cent with 12.5 million shares traded, becoming the second most active stock in HCM City's market. Other shares like HCM Securities Co (HCM), VNDirect Securities Co (VND) and BIDV Securities Co (BSI) also advanced 3 to 4 per cent each.The overall market conditions were positive, as the number of gaining shares almost doubled that of the losers.Liquidity improved with a total of 215.4 million shares worth almost VND3.4 trillion (US$151.1 million) being traded by the end of the session in the two markets, up 13 per cent in volume and 29 per cent in value compared with the previous session.Foreign investors stopped selling out yesterday, concluding as net buyers on the two bourses after three days of net selling.They picked up shares worth a combined VND100 billion ($4.4 million) in the two markets
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