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VietNamNews

Local indices make gains on return from Tet holiday break

Update: March, 02/2015 - 08:51

Workers at the Ha Noi Stock Exchange. Benchmark indices finished higher last week on both national stock exchanges. — VNA/VNS Photo Minh Quyet

HA NOI (VNS) — Two main indexes on the market, the VN-Index and HNX-Index, had a slight increase to finish last week.

The VN-Index gained 0.91 per cent to close the week at 592.57 points, while the HNX-Index rose 0.6 per cent to 85.77 points.

Further, the VN30-Index and the HN30-Index, capturing 30 of the largest codes in terms of capitalisation and liquidity in the southern and northern bourses, gained 0.19 and 0.3 per cent to conclude the week at 618.39 and 165.69 points, respectively.

On the HCM City Stock Exchange, the average trading volume reached 79.7 million shares, an increase of 15 per cent over the week before Tet, while the average trading volume on the Ha Noi Stock Exchange was 38.5 million shares, an increase of 27 per cent over the week before Tet.

Meanwhile, the first trading session on February 24 was active, with the VN-Index gaining 10 points to close the session at 596.95 points, as banking stocks and foreign investors were the focus during the session.

Banking shares remained the most influential stocks on both markets since the market closed for the Tet holiday. Vietcombank (VCB) was the focus of the markets when VCB became the most improved code on the list at the end of the day. Foreign investors also finished the first session as net buyers, with a total value of VND127 billion ($6 million) and a trading volume of 3.8 million shares.

During the following sessions, stock holders sold more to gain profits, which limited the markets from improving. However, this significantly increased the liquidity on both markets. Top stocks, including Ocean Group Joint Stock Company (OGC) and FLC Joint Stock Company (FLC), were also the top traders on the market last week.

In the final trading session, both markets were less active compared to previous sessions. The Petro Viet Nam Gas Joint Stock Corporation (GAS) was the only large-cap stock that increased slightly on the chart. However, its increase was not sufficient to raise the VN-Index, as other large-cap stocks were declining.

In addition, foreign investors continued to be net buyers, with a total of VND496.7 billion ($23.6 million) and a volume of 23.8 million shares on both markets. However, foreign purchases decreased during the week, from a peak of VND300 billion ($14.28 million) to VND36.4 billion ($1.73 million) at the end of the week.

Of note, the BIDV Security Company (BSC) predicted that VN-Index would be likely to decline to nearly 580 points. The decrease in foreign investments during last week created a strong impact on the stock market, while domestic demand was not strong enough to maintain the index at 600 points. The VN-Index will only reach 590 points if foreign investors remain net buyers this week.

Potential stocks to be invested this week include Bao Viet Holdings (BVH), Techcombank (CTG), Hoa Phat Group (HPG) and Petro Viet Nam Drilling (PVD). — VNS



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