|Investors trade at the BIDV Securities Company (BSC)'s trading floor. Stock analysts have negative views of the market outlook this week. — VNS Photo Truong Vi
HA NOI (VNS) — Stock analysts have negative views of the market outlook this week as liquidity continued to weaken and foreign investors extended their net selling streak throughout last week.
On the HCM City Stock Exchange, the benchmark VN-Index lost a cumulative 3.08 per cent over last week, closing at 537.44 points last Friday.
Blue chips were the main drag as many of the top shares by market value and liquidity declined, including PV Gas, Vinamilk, Vietcombank, Masan Group, VinGroup, as well as Hoang Anh Gia Lai Co, BIDV, and Bao Viet Holdings.
VN30, which tracks the 30 shares that have the highest market capitalisation and liquidity, plunged 5.27 per cent to end the week at 561.87 points.
Furthermore, the slump of large caps had adverse impacts on speculative stocks. Trades on hot stocks such as the FLC Group, HAI Agrochem Co, Tan Tao Investment Industry Co, Thong Nhat Production and Investment Co, as well as Quang Nam Rubber Investment Co dropped with just 1-3 million stocks exchanged each.
Money continued to sit out the market as daily trading volume dropped another 12.3 per cent compared with the previous session, averaging 82 million shares worth VND1.24 trillion (US$57.2 million) per session.
Domestic investors were also hit as foreign investors again concluded the week as net sellers in the HCM City's market, responsible for a total net sell of VND121.4 billion ($5.6 million).
According to analysts at Maybank Kim Eng Securities Co, continuous sell-out by the foreign sector, though with modest value, was a negative signal, which, accompanied with draining liquidity, could slow down the market recovery.
Analysts at Maritime Bank Securities Co also said the VN-Index retreating below the psychological support of 540 points made investors pessimistic and this week can continue to see downward trades. They have predicted 530 to be the next support level.
On the Ha Noi Stock Exchange, the HNX-Index slid 2.61 per cent throughout the week, finishing at 78.21 points Friday. Liquidity also fell as just an average of almost 38 million shares worth VND436.34 billion ($20.1 million) were traded each session.
Foreign investors remained net buyers in the Ha Noi's market, but they picked up a modest volume of shares, worth a total of VND32.1 billion ($1.5 million).
"Slow trades and the continuous decline of indices are challenging investors' patience," analysts at Viet Dragon Securities Co wrote in a note.
They also noted that a bunch of bargain investors is waiting to comb good and cheap stocks, but is yet cautious of the market outlook.
"Now may not be the right time to invest strongly. ‘Conservative' investors may consider some stocks with high dividend rates in the context of the current downtrend," they added. — VNS