HÀ NỘI – Vietnamese shares may continue to decline this week as investors could take short-term profits from blue chips and speculative stocks on their significant improvements, securities firms and analysts said.

Local shares had an amazing trading week, beating previous forecasts as they bounced back from a one-month low and a series of volatile trading days to a three-week high at the end of the week.

The benchmark VN Index on the HCM Stock Exchange on Friday fell 0.7 per cent to close at 655.71 points from a four-day rally of 5.2 per cent. The southern market index rose 4.5 per cent from the previous trading week.

The minor index, the HNX Index on the Hà Nội Stock Exchange, inched down 0.1 per cent from a three-day gain of 2.8 per cent to finish last week at 83.13 points. The three-day increase helped the northern bourse climb 2.5 per cent in a week.

Local shares recovered quite well last week as investors tried to swoop in on blue chips and speculative stocks that had fallen to attractive price levels on low investor confidence and a lack of business information.

“Strong purchasing would boost the market in the short term as last week’s trading liquidity increased strongly from the previous three week’s average one,” Sài Gòn-Hà Nội Securities Corp (SHS) wrote in its report.

Investors last week exchanged nearly 155.4 million shares in each session, worth nearly VND2.74 trillion (US$121.7 million).

“Such good runs made investors worry about the stability of the market and could encourage them to protect their money by selling out stocks to earn short-term profits,” said Bùi Nguyên Khoa, head of macro-economic market at BIDV Securities Corp.

“The VN Index may need one or two falls this week to strengthen the current level, and the testing target now is 680 points,” Khoa said.

Dairy firm Vinamilk (VNM), steel producers, auto traders and other blue chips were the ones that attracted investors, resulting in a high trading liquidity last week. Those stocks ended lower on Friday and may extend losses this week.

VNM on Friday edged down 0.6 per cent after a seven-day gain of 11 per cent, in which the share reached its highest share price ever of VND169,000, driving the market up.

Two leading auto traders, Hoàng Huy Investment Service Corp (HHS) and Hàng Xanh Motors Service JSC (HAX), closed down 1.6 per cent and 0.9 per cent after rising 12 per cent and 15 per cent in the previous two-three trading days.

Meanwhile, speculative stocks such as TMT Motors Corp (TMT), another big auto distributor, Hoàng Anh Gia Lai JSC (HAG) and its subsidiary Hoàng Anh Gia Lai International Agriculture JSC (HNG) have soared more than a quarter during the week, and they could run into profit taking in the coming days.

Steel producers such as Hoa Sen Group (HSG) and Hòa Phát Group (HPG) dropped 1.9 per cent and 0.4 per cent from a five-day and three-day rally of 10 per cent and 7.5 per cent.

Other blue chips, such as Vietcombank (VCB), Sài Gòn Securities Inc (SSI), consumer goods producer Masan Group (MSN) and property and retail firm Vingroup JSC (VIC), may also decline further from their good runs last week.

The oil industry with large-cap stocks such as PetroVietnam Gas Corp (GAS), PetroVietnam Drilling and Well Service Corp (PVD) and PetroVietnam Technical Services Corp (PVS) would be a selling target this week.

GAS has advanced 6.8 per cent and PVS has jumped 22 per cent in the last seven days, while PVD has gone up 12 per cent. – VNS