Fuel escalates, gold plummets

SGGP
The ministries of Finance and Industry and Trade on May 2 ordered fuel wholesalers to simultaneously raise the prices of petrol in Vietnam as of 4 p.m, the third consecutive time since April.

Fuel escalates, gold plummets

Particularly, the price of biofuel E5 RON92 rose VND985 per liter to VND20,688 per liter (US$0.89) while that of RON95 gasoline climbed VND956 per liter to VND22,191 per liter ($0.95). The price of diesel oil 0.05S went up VND311 per liter to VND17,695 per liter ($0.76). Kerosene gained VND363 per liter to VND16,625 per liter. Mazut oil surged VND385 per kilogram to VND16,002 per kilogram ($0.68).

At the same time, the allocations of the fuel price stabilization fund were also changed. Fuel wholesalers were allowed to use VND925 per liter for each liter of E5 RON92 gasoline, VND283 per liter for each liter of RON95 gasoline.

After a long national holiday, the price of gold, the US dollar exchange rate and the VN-Index declined concurrently on May 2.

The price of bullion dropped drastically in tandem with global bullion price to VND36.1 million ($1,553) per tael (1.2 ounces) for buying price and VND36.27 million ($1,561) per tael for selling price, a decrease of VND220,000 per tael in buying price and VND230,000 per tael in selling price compared to the time before the holiday in Ho Chi Minh City.

At the same time in Ha Noi, DOJI Gold and Gems Group bought gold at VND36.18 million per tael and sold at VND36.26 million per tael, down VND120,000 per tael in buying price and VND100,000 per tael in selling price.

The US Federal Reserve announced that it would keep interest rate unchanged at 2.25-2.5 percent, weakening the US dollar against other major currencies, causing global gold price to fall US$9 per ounce. The precious metal was traded at around $1,273 per ounce at 10 a.m. on May 2, equal to VND35.8 million per tael, thus global price was VND400,000 per tael lower than domestic price. This is the lowest level of global bullion in the past week.

The State Bank of Vietnam increased reference US dollar exchange rate by VND5 per dollar on the same day. However, commercial banks lowered the US dollar exchange rate by VND10-VND20 per dollar. Particularly, Vietcombank bought dollars at VND23,210 per dollar and sold at VND23,310 per dollar, down VND20 per dollar compared to before the holiday.

Meanwhile, on free market, selling price of dollars also retreated by VND30 per dollar toVND23,310 whereas buying price edged up VND20 per dollar to VND23,300.

On global market, the Dollar Index hiked to near 97.6 points in the trading session in Asian market from 97.2 points in the trading session in the US. Last week, the indicator sometime touched 98.2 points, the highest level in the past two years.

The Vietnam’s stock market started the first trading session in May with investors’ cautiousness caused by losing momentum in the US stock market.

Ending the trading session, the Vietnam’s benchmark, VN-Index lost 1.1 points, or 0.12 percent, to close at 978.81 points with 105 winners, 184 losers while 63 stocks remained unchanged.

Liquidity on the market was at moderate level, reaching more than 152 million shares, worth more than VND3.35 trillion ($144.11 million).

By Ha My, Nhung Nguyen - Translated by Thuy Doan

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