Local markets slip on sliding oil prices

Stocks fell on local exchanges on Tuesday morning as oil prices dropped during Monday’s overnight trading and pulled down the energy sector, while other shares were hit by strong selling.

Shares fell on both local exchanges on Tuesday morning after oil prices slid in overnight trading, pushing energy stocks down.

The benchmark VN Index on the HCM Stock Exchange ended almost flat at 705.81 points. The southern market index had closed on Monday at 705.9 points.

The HNX Index on the Ha Noi Stock Exchange dropped 0.5 per cent to close at 85.97 points, down from a five-day rally of 1.7 per cent.

The energy sector slipped after a strong trading session on Monday as oil prices declined in the overnight trading. Brent crude slid 2 per cent to close Monday at US$55.59 a barrel, while US crude West Texas Intermediate (WTI) slipped 1.7 per cent to $52.93 a barrel.

Among local energy stocks, PetroVietnam Gas Corp (GAS) ended flat and PetroVietnam Technical Services Corp (PVS) edged down 0.5 per cent.

The finance and banking sector shares contributed to the market’s further decline. The VN Index is now in the strong resistance range, triggering investor selling for profits.

More than 138.2 million shares worth VND2.19 trillion ($97.35 million) were traded on the two local exchanges.

Source VNS