|Investors at the Bao Viet Securities Exchange Centre. — VNA/VNS Photo Pham Hau
HA NOI (VNS) — Brokerage firms have predicted that the national stock market will stabilise at its current daily index scores - and possibly rise even higher this week.
The VN Index (HCM City) and the HNX Index (Ha Noi) are expected to test the benchmark of 640 points and 89.5 points, respectively.
Market directions will possibly depend on business results that companies report for the second quarter.
Thus, securities firms recommend that investors and shareholders strengthen their current possession of shares, and pay more attention to mid-cap and small-cap shares. They say these two groups attracted larger investment during last week.
Last week, shares went through a rough series of corrections and two indices closed the week far apart.
At the end of the week, the VN Index struggled to gain 0.42 per cent to end up at 631.26 points while the HNX Index finished at 86.32 points – a decrease of 0.86 per cent over the previous week.
Pressure from the profit-taking activity and negative information about the oil and gas sector were the main reasons that made the indices decline sharply during last week.
Last week, market liquidity was lower than the previous week. Investors were cautious with the market condition the whole time.
A total of more than 819 million shares were traded last week. They were worth VND13.65 trillion (US$632 million), a decrease of nearly 15 per cent over the previous week.
Key sectors, including gas firms, insurers and banks as well as blue chips, continued to have big effects on driving the market up and down.
The market opened the week with the information about a change in leadership at Viet Nam Oil and Gas Group (PetroVietnam). This led to a sharp decline in all gas shares.
The fall of gas shares on Monday affected all other shares and dragged both local bourses down.
Shareholders became more stabilised during Wednesday and Thursday, however, both bourses fluctuated strongly. Market liquidity was lower due to a lack of market information.
Gas shares managed to gain during these three sessions, but two market-leading sectors – banks and insurers – declined on stronger profit-earning activity as the investment flow began to switch focus from blue chips to mid-cap shares.
The VN Index had an impressive performance on Friday, approaching the benchmark of 635 points in the morning with the rise of blue chips such as Ma San Group Corporation (MSN), Hoa Phat Group Joint Stock Company (HPG) and Hoa Sen Group (HSG) - which rose by 7 per cent to the ceiling value of VND45,900.
However, three leading blue chips on the market – Vietcombank (VCB), PetroVietnam Gas Joint Stock Corporation (GAS) and Bao Viet Holdings (BVH) – either declined or remained flat, and made the VN Index lose its early gain.
Foreign investment last week was also unstable as foreign investors kept switching between net sellers and net buyers on the Ha Noi Stock Exchange. However, their total investment on the HCM Stock Exchange was low.
In total, foreign investors purchased total VND1.53 trillion ($71 million) on both bourses, including VND217.4 billion ($10 million) for Saigon Securities Incorporation (SSI).
In reverse, foreign investors sold total VND1.32 trillion ($61.2 million) on both markets, including the sale of VND144.2 billion ($6.67 million) in HAGL Joint Stock Company (HAG). — VNS