|On the HCM Stock Exchange, the benchmark VN-Index climbed 1.94 per cent during the week, closing Friday at 605.43 points.— Photo doanhnhansaigon
HA NOI (VNS) — Stocks posted modest gains throughout last week, driven by blue chips, but retreated towards the end of the week when reaching the strong resistance level of 610 points.
On the HCM Stock Exchange, the benchmark VN-Index climbed 1.94 per cent during the week, closing Friday at 605.43 points.
Growth of large-cap shares, such as VinGroup (VIC), Masan Group (MSN), Vinamilk (VNM) and PV Gas (GAS) sustained the market development.
Further, thanks to an advance by the largest market capitalisation share GAS, which hit the highest value in its trading history of VND117,000 per share on Tuesday, the VN-Index surpassed the difficult psychological landmark of 600 point.
Also, the VN30, which tracks the top 30 shares by market value and liquidity, increased a cumulative 1.09 per cent to end the week at 641.93 points.
Liquidity improved over the previous week, with the daily trading volume rising some 20 per cent to nearly 90.5 million shares, worth VND1.673 trillion ($79.3 million) per session.
However, according to analysts of FPT Securities Company, the market will hardly see a strong increase due to a lack of support information in the August period. Speculative money will likely pour into small-cap stocks, which have sound indicators and positive information.
"Therefore, investors should hold cash at a rational level and await the market to fall below 600 points before starting new investments," Nguyen Van Quy, an analyst of FPTS, wrote in a report.
On the Ha Noi Stock Exchange, the HNX-Index gained a cumulative 2.45 per cent to end the week at 80.94 points.
Active trading of hot stocks, such as PetroVietnam Construction (PVX), Sai Gon-Ha Noi Bank (SHB), KLF Joint Venture Global Investment Company (KLF), PetroVietnam Technical Services Corporation (PVS) and F.I.T Investment Company (FIT), supported the market.
The market volume grew over 28 per cent compared with the previous week, averaging 46.5 million shares worth VND559.35 billion ($26.5 million) per day.
However, while domestic investors increased buying, foreigners turned heads to sell local shares last week, a move that analysts warned could reverse the market trend.
Meanwhile, foreign investors were responsible for a total net sales value of VND577.2 billion ($27.4 million) on the two markets, of which they unloaded up to VND574 billion ($27.2 million) worth of shares on the HCM City's bourse. Their selling focused on Masan Group (MSN), which totaled VND229 billion ($10.9 million), and confectionery Kinh Do Corporation (KDC), with a value of VND183 billion ($8.7 million).
According to the technical analysis of VNDirect Securities Company, the market will likely continue its uptrend this week thanks to its stable liquidity. — VNS