Oil helps extend gains on VN Index

Vietnamese shares extended gains on September 29, rescued by oil and gas firms during the end of the session after oil prices rebounded strongly on OPEC’s first eight-year output reduction.

The benchmark VN Index on the HCM Stock Exchange rose 0.3 percent to close at 688.55 points – a new nine-year high – extending its gain of 5.7 percent for nine consecutive trading days. The gain also marked the longest gaining streak for the southern market index since the beginning of the year.

Investors at Asia Commerical Bank Securities Company

The HNX Index on the smaller Hanoi Stock Exchange added 0.9 percent to finish at 85.07 points, totaling an increase of 2.4 percent in the last three sessions.

The stock market suffered earlier from profit-earning on financial stocks, which had rallied in the previous sessions.

Vietcombank (VCB) fell 1.8 percent from a three-day gain of 4.3 percent, Vietinbank (CTG) lost 1.4 percent from a two-day increase of 3 percent, and Bank for Investment and Development of Vietnam (BID) was down 2 percent from a two-day surge of 8.6 percent.

Other finance service suppliers such as insurer Bao Viet Holdings (BVH) dropped 2.1 percent from an eight-day rally of 22 percent and Saigon Securities Inc (SSI) edged down 0.4 percent from a three-day rise of 3.7 percent.

“Oil and gas stocks saved the market on September 29,” Bao Viet Securities Corp (BVSC) said in a note.

Crude prices advanced at the strongest level since April after members of the Organisation of Petroleum Exporting Countries (OPEC) decided for the first time in the past eight years to cut their output volumes in order to save market prices.

“The output cut was such a surprise for the whole market as analysts and traders were expecting OPEC members to maintain current production levels since 2014 to secure their market shares,” BVSC said.

“Energy stocks are benefiting from this trend and are likely to continue rising in October.”

The largest listed energy firms including PetroVietnam Gas Corp (GAS), PetroVietnam Drilling and Well Services Corp (PVD), and PetroVietnam Technical Services Corp (PVS) soared between 4.6 percent and 9.5 percent.

Investors traded more than 168 million shares worth 3.54 trillion VND (157.3 million USD), an increase of 6.8 percent from the September 28 trading value.