|Staff at the Ha Noi Stock Exchange, where trade measured VND116.6 billion ($5.5 million) over 16 million shares last week, showing a massive drop of 50 per cent. — VNA/VNS Photo Tuan Anh
HA NOI (VNS)— The VN-Index on the HCM City Stock Exchange yielded mixed results last week, rallying 1.55 per cent to 480.03 points; while the HNX-Index in Ha Noi slid 1.2 per cent to 60.45 points.
In HCM City, average trading value after five sessions reached approximately VND1 trillion (US$47.1 million) with an average volume of 45.6 million shares - a 25 per cent drop from the previous week.
While in HaNoi, trade measured VND116.6 billion ($5.5 million) over 16 million shares, showing a massive drop of 50 per cent.
An overwhelming number of sectors witnessed declines with as many as 14 out of 24 taking a hit. Information technology and communications dropped 3.3 per cent, followed by the seafood sector with a 2.94 per cent decrease.
Heightened investor caution pulled the market down in the first half of the week, although blue chips persisted as the market's top performers. Trade on speculative stocks was also sluggish.
Meanwhile, the downturn in the market was bolstered by a high level of trade, helping to narrow slumps and improve investor confidence.
A revival of market trade was driven by heavyweights Vinamilk (VNM), Vietcombank (VCB), PetroVietnam Gas (GAS), food processor Masan (MSN) and insurer Bao Viet Holdings (BVH).
The most notable recovery, however, belonged to VNM, which made significant gains across the week's sessions.
Speculative money responded positively to blue chip trades, prompting capital flows into property developers Tan Tao (ITA) and Kinh Bac City Development (KBC), Licogi 16 (LCG) and Cotecland (CLG), financial conglomerate Ocean Group (OGC), PetroVietnam Transportation (PVT) and hotel giant Thuan Thao (GTT).
The greatest hit to the market came from foreign sell-offs in the first days of September. From August 28, the two largest exchange-traded funds in Viet Nam, Market Vector Viet Nam ETF and FTSE Viet Nam UCIT, were hit by an exodus of foreign money; recording net losses of $5.17 million and $10 million, respectively.
However, previous weeks of continuous sell offs were overturned last week as foreign investors became net buyers. Net value climbed up to VND153.9 billion ($7.2 million) with VNM receiving the most attention from foreign investors.
Analysts from PetroVietnam Securities Co predict foreign investors will soon resume the sell-off. — VNS