Petroleum stocks seen faring better this week: analysts

Petroleum stocks will have a better chance of success, in addition to real estate, banking, construction and speculative stocks this week, securities experts said.

Phan Dung Khanh, senior director of Maybank Kim Eng Securities Company (MBKE), forecast the market may still make positive movements this week, as cash flow is recovering while liquidity is on the rise. The second-quarter financial reports of various companies are largely positive.

The general liquidity of the past week remained quite good and maintained an average VND5 trillion each session, said Nguyen Hong Khanh, head of analysis at Vietnam International Securities (VIS).

However, the VIS executive noted that the United States and China are the two largest trade partners of Vietnam, so their trade tensions will have chain effects on the Southeast Asian nation in the long run. That is not to mention that Vietnam’s industrial activities are mainly reliant on the foreign direct investment sector.

Khanh of MBKE added other factors such as the interest rate policies of the U.S. Federal Reserve System, the strong value of the U.S. dollar, the interest rate hikes of central banks, signs of global economic downturn, and high bond yields of the U.S. government will also cause strong impacts.

Investors have greater confidence in the banking sector, thanks to the positive first-half business results of banks. Other sectors like petroleum are expected to recover, as oil prices have been stable at around US$70 per barrel, and many oil and gas stocks have fallen sharply, according to Khanh of VIS.

The VN-Index of the Hochiminh Stock Exchange gained 0.63% to close at 959.6 points last Friday. For the week, the index climbed roughly 2.6% for a third week of gains.

Real estate provider VIC (+4.5%) closed at its record high and was the top contributor to the day’s gains, while subsidiary VRE (+3.6%) also outperformed.

Energy names extended their hot streak, led by GAS (+2.9%, +26% over the past month), PVS (+3.3%, +24%) and PVD (+6.4%, +23%).

Dairy firm VNM, however, fell by 2.1% to its lowest level since June, due to strong net selling by foreign investors (roughly US$4 million). Brewery firm SAB (-2%) also slid below VND200,000 to a one-year low.

Meanwhile, the HNX-Index on the Hanoi Stock Exchange rose by 0.56% to end at 106.24 points, making a week-on-week growth of 0.51%.

More than 237.8 million shares were traded on the two local exchanges, worth VND5.37 trillion.

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