|Investors follow transactions at An Binh Securities in Ha Noi. Analysts predict that the market rally will extend to this week. — VNS Photo Viet Thanh
HA NOI (VNS) — Stock indices have advanced, accompanied by steady increases in liquidity, and this is what investors expect to continue in both exchanges this week.
At the HCM Stock Exchange, the benchmark VN-Index surpassed the five-year peak of 615 points recorded in October 2009 to close last week's trading at 620.14 points, a cumulative rise of 2.63 per cent during the week.
Blue chips gave the market a boost. PV Gas (GAS), the biggest stock in terms of market value, jumped 3.4 per cent while large-cap shares such as VinGroup (VIC) posted substantial gains, along with Masan Group (MSN), Hoa Phat Group (HPG), PetroVietnam Drilling and Well Services Corporation (PVD) and Saigon Securities Inc (SSI).
The VN30 Index, which tracks the top 30 shares by market value and liquidity, also rose 1.52 per cent to finish at 654.96 points.
Investors' confidence showed in the steady increases of money inflows into the market. Daily trading volume grew 40 per cent over the previous week, averaging more than 139 million shares, while market value climbed 35 per cent to reach nearly VND2.94 trillion (US$139.3 million) per day.
On the Ha Noi Stock Exchange, the HNX-Index also gained 1.35 per cent to end on Friday at 83.34 points.
Trading also improved here, with market volume growing by more than 16 per cent compared with the previous session, averaging nearly 62 million shares worth VND791 billion ($37.5 million) per session.
Analysts say profit-taking activity, particularly in oil and gas and securities shares, which saw impressive increases in the previous week, sparked the strong growth of liquidity on both exchanges last week.
They predict that the market rally will extend to this week, and investors could consider buying leading stocks in oil and gas, construction, real estate and securities groups.
One positive signal is that foreign investors ended their nearly two-week net selling streak on the HCM City market and returned as net buyers here in the last two sessions.
They were net buyers in term of volume (1.2 million shares) but were still net sellers in term of value, with a net sell value of nearly VND50 billion ($2.4 million). This was much smaller than their average net sales figures of VND400-640 billion ($19-30 million) in the last three weeks.
Dairy giant Vinamilk (VNM) topped foreign purchases last week, with 16.4 million shares worth VND1.872 trillion ($88.7 million) traded through negotiations. F&N Dairy Investment, Vinamilk's biggest foreign stakeholder, purchased more than 90 per cent, or 15 million, of these shares.
It is believed that F&N bought 11.4 million of these shares from Dragon Capital and 3.6 million shares from VinaCapital, as these two funds registered to sell the exact amount of shares that F&N bought.
In Ha Noi's market, the foreign sector was also responsible for a net sell value of VND10.4 billion ($500,000).
"Foreign investors' comeback as net buyers will have a great influence on the market sentiment, especially at a time when the VN-Index comes near the next strong resistance," said Nguyen Van Quy, a stock analyst at FPT Securities Company.
But Quy said that for the Index to break through the 633-point threshold, the market needed a strong boost from macro-economic support information. — VNS