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VietNamNews

Analysts advise caution as money flow increases

Update: June, 01/2015 - 08:19
Last week, both indices strongly advanced in the first two sessions but their improvements were restrained in the last three days as investors sold large-cap shares to earn profits. — vnexpress

HA NOI (VNS) — Investors should be cautious with their investments as profit-taking may continue next week, according to analysts from securities firms such as BIDV Securities JSC and Bao Viet Securities JSC.

The increasing money flow into the market shows that investors have gained confidence, but over-excitement may increase risks.

It is possible the market may reach 580 points by the end of this week.

Short-terms investors should not sell their shares at the moment and take advantage of declining sessions to buy more shares.

Last week, both indices strongly advanced in the first two sessions but their improvements were restrained in the last three days as investors sold large-cap shares to earn profits.

As a result, the VN Index fell on Wednesday and Friday while the HNX Index struggled to maintain its upward trend.

At the end of the week, the VN Index on the HCM Stock Exchange was up 1.38 per cent to 569.56 points, and the HNX Index on the Ha Noi Stock Exchange closed at 83.23 points, an increase of 4.63 per cent.

Blue chips continued to attract investment, especially Vingroup (VIC), PetroVietnam Gas Joint Stock Corporation (GAS), Vinamilk (VNM), Ma San Group (MSN), FIT Investment Joint Stock Company (FIT) and KLF Global Investment JSC (KLF).

FLC Group (FLC) and Ocean Group JSC (OGC) hit their ceiling prices for the last three sessions to support the market's advance.

Sharp increases in bank shares such as Vietcombank (VCB), the Bank for Investment and Development of Vietnam (BID), Sai Gon-Ha Noi Bank (SHB) and Asia Commercial Bank (ACB) drove the market up.

Securities firms also improved their market values, including Sai Gon Securities Incorporation (SSI), HCM Securities Corporation (HCM), Thien Viet Securities JSC (TVS), IN Securities JSC (VIX) and Sai Gon-Ha Noi Securities JSC (SHS).

Market liquidity rose sharply against the previous week on the two bourses. On the southern bourse, total trading volume during the week was more than 654 million shares worth VND9.67 trillion ($448 million), an increase of 12.8 per cent.

Investors on the Ha Noi bourse traded total nearly 289 million shares during last week, valued at VND3.1 trillion ($143.8 million), up 12.5 per cent over the previous week. Foreign investors remained net buyers last week.

In total, foreign investors recorded a net buy value of approximately VND390 billion ($18 million), equal to 75 per cent of the previous week's figure.

Blue chips, especially bank shares, were the targets for foreign investments. On the HCM bourse, MSN received the highest net foreign purchase of VND70 billion ($3.2 million), followed by Sacombank (STB) and Imexpharm Corporation (IMP) with VND41.5 billion ($1.92 million) and VND38.2 billion ($1.77 million).

In Ha Noi, net foreign investments focused most on Petroleum Technical Services Corporation (PVS) and Viet Nam Construction Group (VCG), with VND17.1 billion ($791,600) and VND16.6 billion ($768,500). — VNS

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