HA NOI (VNS)— Last week, national stocks managed to rally despite drops in trading.
Foreign investors turned to be net sellers, which significantly affected domestic investor sentiment. However, cash poured back during last Friday's session to help indexes rebound.
On the HCM City Stock Exchange, the VN-Index increased 0.6 per cent to 501.34 points. The average trading value exceeded VND1 trillion on an average volume of 87.2 million shares.
On the Ha Noi Stock Exchange, the HNX-Index rose 1 per cent to 63.93 points. Trading averaged VND320 billion and 45.5 million shares per session.
While small-cap stocks rallied around 0.5 per cent, large-cap stocks declined at the same rate.
Shares of real estate, construction, mineral and logistics companies continued to attract investor attention early in the week.
Sell-offs occurred during the following sessions as the tumble of blue chips dragged the market down, especially after foreign investors stopped buying and started to sell.
Their net selling value reached VND96.7 billion last week, weighing on mostly blue chips, including private equity group Masan (MSN), Phu My Fertiliser (DPM) and property developers Vingroup (VIC) and Hoang Anh Gia Lai (HAG).
According to the latest draft on foreign ownership, foreign investors can hold up to 60 per cent of a listed company. The draft received a lot of support from investors and was expected to boost investment in the coming time.
Shares increased in 15 out of 24 sectors, led by agriculture and fishery.
Notable performers included Song Da Trading and Transport (SDP), up 34.4 per cent, textile and garment firm Mirae (KMR), up 20.7 per cent, Vietnam Mechanisation Electrification and Construction (MCG), up 16.3 per cent and furniture group Duc Long Gia Lai (DLG), up 12.5 per cent.
Most of these stocks posted dramatic gains thanks to their financial reports, which showed substantial profits in the first nine months of this year.
Last week, the State Bank of Viet Nam also released critical information. Credit growth in the banking system reached 7.18 per cent as of October 31, while capital from customers topped 14 per cent.
Although the credit growth of 7.18 per cent was far below this year's target of 12 per cent, it was much higher than last year's rate (3.54 per cent).
"So far, economic policies such as controlling inflation for stable money market and GDP growth have shown some effectiveness," said FPT Securities Co analyst Nguyen Van Quy.
"This is an important base to bolster the economy next year," he said.
Securities investment would be more profitable and attractive with this economic scenario, Quy predicted.
Credit institutions held VND142 trillion in bad debts, accounting for 4.6 per cent of total outstanding loans.
The State Bank has identified eight more weak institutions, consisting of two commercial banks and six non-banking entities. — VNS