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Shares gain despite investor caution last week

Update: April, 14/2014 - 08:57

Investors at FPT Securities. A cautious mentality continued last week as liquidity eased, though the benchmark indices still managed to advance. — VNS Photo Thai Ha

HA NOI (VNS) — Cautious psychology continued last week with eased liquidity, though the benchmark indices still managed to advance.

On HCM City Stock Exchange, the VN-Index added 1.27 per cent to close the week at 600.57 points, while the HNX-Index on the northern bourse gained 0.84 per cent to end at 87.49 points.

On the two first trading days of the week, the benchmark indices rose thank to gains of large-cap stocks, including PetroVietnam Gas Corporation (GAS), Vinamilk (VNM), Masan Group (MSN) and insurance Bao Viet Holdings (BVH).

However, with the trading volume and value seen declining, investors remained cautious. The matching volumes on HCM City Stock Exchange and Ha Noi Exchange decreased, respectively, 13 per cent and 15 per cent over the previous week.

Meanwhile, profit-booking pressures intensified on the two last trading days of the week the markets were closed on Wednesday for a public holiday.

Also, the upward trend was reversed after the VN-Index approached the 610-point level. Selling activities were strong on blue chips, especially as strong net selling by foreign investors last week put the market under pressure, although they had returned to net buying the previous week.

During last week, the net selling value of foreign investors reached VND503 billion (US$23.9 million), mainly on PetroVietnam Fertilisers and Chemicals Corporation (DPM), real estate developer Vingroup (VIC) and Hoang Anh Gia Lai (HAG).

However, Masan Group (MSN) and PetroVietnam Gas Corporation (GAS), together with stocks in the securities sector, continued to attract capital inflow, even when the market posted losses. Also, GAS on Friday increased by 2.2 per cent to VND94,500 ($4.5) per share.

MSN added 1 per cent to be traded at VND98,000 ($4.7) on a high dividend payout ratio and target of $1 billion turnover for this year. Gains of GAS and MSN helped narrow the market loss on Friday.

The index for stocks in the securities sector also posted the highest increased rate last week, at 4.96 per cent.

On the southern bourse, an average of 116 million shares were traded per session, with an average value of nearly VND2.4 trillion ($114.2 million), respectively 12 per cent and 4 per cent lower than the previous week.

The average trading volume and value on the capital city's exchange were 19 per cent and 16 per cent lower, respectively, at 71.8 million shares and VND858 billion ($40.8 million).

According to BIDV Securities, the Vn-Index would continue to consolidate around the 600-point level this week with low trading volume of around 100 million shares. The company said that investment chances for short-term profit takings were small.

Several securities firms forecast that the market would continue to face difficulties this week, as the benchmark indices was on a sensitive resistance band, warning short-term investors to be cautious.

However, Rong Viet Securities expected the market would improve this week as business results of some large companies would be unveiled this week and become a market stimulator. — VNS



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