|On the HCM Stock Exchange, the Vn-Index lost a cumulative 2.4 per cent during the week, closing on Friday at 560.78 points. — Photo xaluan
HA NOI (VNS) — Stocks lost value last week, driven by negative information, including a hike in USD exchange rate and news about China moving the second oil rig closer to Viet Nam's coast.
Market insiders forecast that trading this week would most likely be volatile amid expectations of second-quarter business results.
On the HCM Stock Exchange, the Vn-Index lost a cumulative 2.4 per cent during the week, closing on Friday at 560.78 points.
Profit-taking across blue chips drove the market down. Shares which gained strongly in the previous week like PV Gas (GAS), Masan Group (MSN) and Vietcombank (VCB) tumbled this week.
The VN30, tracking the top 30 shares by market value and liquidity was also down 1.7 per cent, to 607.23 points.
On Thursday, the central bank surprisingly raised the VND/USD exchange rate by 1 per cent to VND21,246 per USD. On the other hand, the latest movement of China's second oil rig within Viet Nam's waters worried investors and increased selling.
Bargain hunting rose, however, focusing on hot stocks like securities, construction and real estate.
Total market volume grew 22.6 per cent over the previous week, averaging nearly 1.9 million shares, worth over VND1.73 trillion (US$82.1 million) per day.
Strong buys by foreign investors also helped cushion the market. They ended last week as net buyers on the southern exchanges, picking up shares worth VND624 billion ($29.6 million).
Their buys focused on large-cap shares including Sacombank (STB), Phu My Fertiliser (DPM), and seafood producer Hung Vuong Group (HVG).
On the Ha Noi Stock Exchange, the HNX-Index inched down just 0.48 per cent, ending Friday at 76.31 points.
Trading decreased here, however, as the daily trading volume went down nearly 9 per cent to an average of over 50 million shares, worth VND522.5 billion ($24.8 million) per session.
Foreign investors were also net buyers, responsible for a total value of VND113.6 billion ($5.4 million). They bought PetroVietnam Technical Services Corp (PVS), Sai Gon-Ha Noi Bank (SHB) and VNDirect Securities (VND) most.
The market in the short term will be segmented as cash flow will focus on stocks that benefit from the higher value of the USD, particularly export companies such as textiles, oil and gas and fisheries, Le Thi Bich Hang, stock analyst of FPT Securities Co said.
Estimates of the second-quarter business results of listed companies, which will be released towards the end of this week, are expected to draw attention of investors.
Hot money is likely to pour into shares of companies posting positive business results, while the ones paying dividends in July will probably go up. — VNS