HÀ NỘI – The VN-Index closed at 731.3 points yesterday, up 0.2 per cent over Monday’s level and a record high since February 20, 2008. Shares rose on both national exchanges, but a correction is looming as the benchmark index continued to set new peaks. The key index has expanded roughly 10 per cent this year.

On the Hà Nội Stock Exchange, the HNX-Index also inched up 0.2 per cent to end at 90.6 points, the highest since December 17, 2014. The northern market index has climbed 14.3 per cent compared to the end of 2016.

Money flows moved among steel, construction, real estate and securities stocks, and shifted back to large-cap banks and some blue chips.

Vietcombank (VCB), Vietinbank (CTG), Military Bank (MBB), VinGroup (VIC), Vinamilk (VNM) and Vietjet Air (VJC) advanced, but PV Gas (GAS), insurer Bảo Việt Holdings (BVH), Sacombank (STB), Asia Commercial Bank (ACB) and brewery Sabeco (SAB) declined and dragged down the market.

Shares of Bảo Việt Holdings and Asia Commercial Bank (ACB) were among noticeable losers, while these businesses reported high profits last year.

Profit-taking activities increased in the afternoon trade on the back of rising investor worry over a possible correction.

Liquidity increased over Monday with over 296 million shares worth a combined VNĐ4.6 trillion (US$201.8 million) traded in the two markets, up 34.3 per cent in volume and 4.5 per cent in value compared to the previous session.

“Although we keep positive market outlook, this is an unpredictable period when cash flows are volatile and differential among stock groups,” analysts at Vietnam Investment Securities Joint Stock Company wrote in a report.

The continuous breakthrough of the VN-Index accompanied by slight increases in recent sessions might indicate a near-term correction, they said and reckoned the VN-Index could retreat to 720 points when it touched 735.

Foreign investors extended their net buys in the local stock markets, picking up shares worth a net value of VNĐ314.3 billion on Tuesday on the two exchanges.

According to the latest report by the National Financial Supervisory Commission, foreign investors have been net buyers on the local securities market since the beginning of this year, for a total of $554 million in the first three months, including bonds worth $418 million and stocks valued at $136 million. – VNS