Vietnam’s Stocks Rise to 26-Month High After Gasoline Price Cut
Vietnam stocks advanced, heading for a fourth day of gains, after the Ministry of Finance ordered fuel retailers to cut prices.
The Ho Chi Minh City Stock Exchange’s VN Index (VNINDEX) climbed 0.8 percent to 514.68, on course for the highest close since Feb. 15, 2011. Vietnam Dairy Products Joint-Stock Co. (VNM), known as Vinamilk, climbed 2.3 percent. PetroVietnam Gas Joint-Stock Co., the biggest-listed company by market value, rose 5.3 percent, poised for a record.
Vietnam National Petroleum Corp., known as Petrolimex, Vietnam’s largest petroleum-products importer, cut prices of gasoline by 500 dong (2 cents) per liter last night after the Ministry of Finance ordered the reduction to bring local prices in line with the recent declines in global markets, according to a statement on the company’s website. Petrolimex also reduced prices of diesel and kerosene.
“Thanks to the gasoline price cuts last night, market sentiment has turned bullish this morning,” Michel Tosto, head of institutional sales and brokerage at Viet Capital Securities Joint-Stock Co., wrote in a note to investors today.
The benchmark index has rallied 25 percent this year, the second-best performer in Asia after Japan, as the country’s central bank cut borrowing costs to spur growth amid slowing inflation.
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