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VietNamNews

Mid-cap, speculative stocks buoy market

Update: January, 19/2015 - 08:48

Local investors wait for results of the trading session at Bao Viet Securities Company in Ha Noi on Friday. — Photo Tran Viet

Ha Noi (VNS) — Viet Nam's stock market fluctuated last week as benchmark indexes ended mixed. The VN-Index gained value compared to the previous week thanks to positive trading on mid-cap and speculative stocks.

The VN-Index added 0.89 per cent to 574.81 points, while the average value and volume of transactions on the HCM Stock Exchange were roughly VND2 trillion and 116.5 million shares, improving some 20 per cent over the preceding week.

Meanwhile, the HNX-Index on the Ha Noi Stock Exchange lost 0.35 per cent to finish at 85.35 points. Trading averaged VND737.4 billion and 54.86 million shares, rising more than 10 per cent.

As divided by market capitalisation, mid-cap stocks saw the highest rally at 1.7 per cent, followed by large-cap stocks at 1.3 per cent. Small-cap and micro-cap stocks declined 0.1 and 0.9 per cent, respectively. Recovering global oil prices had positive effects on oil and gas shares, particularly large companies such as PetroVietnam Gas (GAS) and PetroVietnam Drilling Services (PVD). Some banking stocks, such as Vietcombank (VCB), Military Bank (MBB) and the Bank for Investment and Development of Viet Nam (BIDV), also saw increasing sessions.

However, selling pressure on those shares dipped towards the end of the week as they fell into the red across the electronic board. Further, mid-cap and speculative stocks salvaged the market, as buying orders concentrated on shares of Quang Nam Rubber (VHG), property developers Hoang Anh Gia Lai (HAG), FLC Group (FLC), An Duong Thao Dien (HAR), Sacomreal (SCR), retailer KLF Investment (KLF), Vietnam Petroleum Transport (VIP), furniture group Duc Long Gia Lai (DLG), HCM City Securities (HCM) and Kim Long Securities (KLS). Notably last week, whenever the market rallied, foreign investors ended as net sellers and vice versa. Combining the net value on both bourses, foreign investors were net sellers by 104.2 billion ($4.9 million).

"According to technical signals, we predict that the fluctuations will continue during the upcoming trading days," said Phu Hung Securities Co's analysts, adding that it would provide opportunities to purchase shares.

Other analysts from Maritime Bank Securities predicted the VN-Index would decrease to 565-566 points, where they advised investors to buy. "Investors can consider companies with surging profits in the fourth quarter last year, including construction firm DIC Corp (DIG), Imexpharm (IMP) and Quang Binh Import Export (QBS). Generally, market prospects remain positive. In 2014, the stock market's capitalisation reached VND1.13 quadrillion, increasing VND179 trillion compared to the end of 2013 and accounting for 31.5 per cent of the gross domestic product.

According to the State Securities Commission, liquidity also improved, with the average transaction value in both the stock and bond markets hitting VND5.5 trillion, climbing 104 per cent over 2013. The total value of raised capital was estimated at VND237 trillion, rising 6 per cent.The commission also revealed that the number of profitable listed companies increased 5 per cent. — VNS



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