|Securities staff members check bidding applications at the Ha Noi Stock Exchange. Stocks continued to slide last week. — VNS Photo Thai Ha
HA NOI (VNS) — Stocks continued to slide last week, but the pace slowed down, propped up by foreign purchases and bargain activities of risk-taking investors.
On the HCM Stock Exchange, the benchmark VN-Index lost 0.66 per cent during the week, closing at 547.85 points, whereas the VN30, which tracks the top 30 shares by market value and liquidity, fell by a more substantial 0.92 per cent to end Friday at 577.66 points.
In addition, movements of blue chips had great impacts on the market, which fluctuated around the rise and fall of the stock prices of PV Gas (GAS), PetroVietnam Drilling and Wells Service Corp (PVD), VinGroup (VOC), Vinamilk (VNM), Masan Group (MSN), and Bank for Investment and Development of Vietnam (BID).
As the largest stock in terms of market value, GAS played the most important role in driving the market, as their steep decline on Monday and Wednesday sharply pulled the market down.
However, bargaining efforts by many investors cushioned this fall. Investors poured money into large-cap shares and stocks with solid fundamentals that, in turn, had a widespread impact on speculative stocks in construction, real estate, and securities shares.
Furthermore, liquidity improved slightly on the HCM City market, with the trading volume rising by 2 per cent, as compared to that the previous week, averaging at more than 96 million shares worth VND91.58 trillion (US$73.8 million) per session.
On the Ha Noi Stock Exchange, the HNX-Index also curbed its losses to just 0.56 per cent to close at 81.93 points on Friday.
With the lack of support from blue chips, the trading was weak and the market volume dropped 9 per cent from last week, reaching just 37 million shares, valued at VND449 billion (US$21 million).
Moreover, after two weeks of strong selling, foreign investors returned as net buyers in both markets, responsible for a combined net buy value of VND50 billion (US$2.3 million). Their moves contributed to easing domestic investors' mindsets and to supporting market growth.
Investors focused their purchases on the HCM City market with a value of VND49.4 billion (US$2.3 million), while pouring nearly VND600 million (US$28,000) into the Ha Noi market.
However, the foreign sector continued to unload blue chips, such as GAS, PVD and VIC, while purchasing mid-cap stocks that caused the market to recover more slowly.
According to analysts at Bao Viet Securities Company, the market is seen as remaining risky, as the expansion of indices has not been accompanied with the growth of liquidity. In contrast, liquidity has been seen declining towards the end of the week.
"It will take a long time for the market to reach the bottom, accompanied by strong fluctuations. It is advised that investors who have low risk tolerances wait for clearer signs before deciding to make investments," analysts cautioned in a note. — VNS