Tuesday, December 19 2017

VietNamNews

Analysts warn of correction

Update: September, 15/2014 - 09:18
Employees at FPT Securities watch market fluctuations at the company's trading floor in Ha Noi. — VNS Photo Thai Ha

HA NOI (VNS) — Shares advanced last Friday over an increase in the demand for oil and seafood stocks.

However, the VN-Index on the HCM City Stock Exchange still closed 0.96 per cent lower than the previous Friday's session. Transaction value averaged VND3.14 trillion (US$148.1 million) on a daily volume of 175.5 million shares.

On the Ha Noi Stock Exchange, the HNX-Index jumped by 1.07 per cent to 89.49 points. The average value and volume of trades improved by around 25 per cent to VND1.25 trillion ($58.9 million) and 93 million shares.

After Monday's rally, shares plunged in the following session, but there was no negative information. Investors offloaded and a series of stocks hit bottom. However, buying at low prices was also retained, pushing trading to a record high.

Apart from oil and seafood, investors eyed shares of transportation, real estate and construction companies, notably penny stocks.

"We are confident in market prospects, and opportunities to buy will come from the stocks mentioned," BIDV Securities Company analysts said.

In the coming sessions this week, however, they warned that the market would see a correction as many shares had risen quickly.

Last Saturday, Market Vectors Index Solutions GmbH announced it added two realty shares – FLC Group (FLC) and Becamex (IJC) – to the Market Vectors Viet Nam Index while rejecting logistic blue chip Gemadept (GMD).

Notably, FLC was also chosen by the FTSE Viet Nam Index and GMD had to leave. The Viet Nam Securities Depository had said foreign ownership in Gemadept was reduced from 49 to 20.4 per cent. Currently, the company is out of shares for foreign investors.

Foreign investors were net sellers on both bourses, unloading a total margin of VND112 billion ($5.2 million). Shares most heavily sold include commercial baker Kinh Do (KDC), Sai Gon Securities Inc (SSI) and property developers Kinh Bac (KBC) and Tan Tao (ITA).

Bloomberg reported that Fitch Ratings might consider raising Viet Nam's outlook to BB – from the current B+ level due to "strengthening in external finances" and an improved economy. With other improvements in economic indicators, securities analysts are all saying good things about the future of the market.

However, investors who want to surf the market waves should not be active at this point, said FPT Securities' Le Thi Bich Hang. — VNS

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