HÀ NỘI — Expectations of positive corporate earnings reports will lead Vietnamese shares up this week, especially financial-banking stocks, analysts say.

Both local indices ended Friday on a positive note to extend their gains for a third day and made week-on-week increases.

The benchmark VN-Index on the HCM Stock Exchange rose 0.6 per cent to finish Friday at 776.47 points.

The HNX-Index on the Hà Nội Stock Exchange added 0.4 per cent to end at 99.14 points.

Both local indices totaled a three-day rally of about 1.1 per cent and a weekly increase of 1 per cent, each.

According to analysts, the rise of the stock market last week was due to the increase of large-cap shares, which were boosted by investors’ expectations of positive earnings reports in the second quarter. Analysts forecast that will also be the main driver pushing the stock indices further this week.

Among all 20 sectors on the stock market, the banking and brokerage industries are the ones whose earnings reports could meet investor expectations.

Nguyễn Ngọc Lan, senior analyst at Agribank Securities Co (Agriseco), said the banking sector would lead the market up as bank stocks have also been supported by high credit demand and the recently approved resolution on dealing with bad debts.

Though the bad debt resolution, which was approved by the National Assembly on June 21, will need time to make a real impact on bank earnings, it will help bank stocks gain attention from investors after they were hit lately by profit-taking, Lan said.

Bank stocks, as well as securities firm shares, will lead the stock market up in coming weeks, especially after a lull that was too long, according to Phan Dũng Khánh, analyst at Maybank KimEng Securities Co.

Those stocks will be supported by positive business information on both the sector and corporate levels, such as the derivatives market that will be launched in August, the resolution on dealing with bad debts and the continuous rise of the stock market, he said.

Away from gold, property

Khánh added that the stock market had risen recently after investors changed their taste from other channels, such as property, gold, foreign currency and bank saving that did not offer interest rates as high as securities products.

In addition, the Government had made its best efforts to attract more investment, provide supporting policies for companies and draw more attention from foreign investors, he said.

In the second quarter, foreign investors posted a net buy value of nearly VNĐ6 trillion (US$270 million), a quarterly increase of 50 per cent, the online newspaper tinnhanhchungkhoan.vn reported on Friday.

Last week alone, foreign investors recorded a net buy value of VNĐ850 billion, an increase of 101.8 per cent week on week. That has helped strengthen both domestic and foreign investor confidence in the prospects of the stock market.

For securities firms, increasing market liquidity also boosted prospects for additional earnings from brokerage activities.

Last week, a total of 1.32 billion shares were exchanged on both local bourses in the five trading sessions, worth VNĐ22.6 trillion. That raised the total trading value in Việt Nam’s securities market in the second quarter to VNĐ270 trillion, a quarterly increase of 36 per cent and a yearly increase of 70 per cent.

Nguyễn Đức Hùng Linh, a senior analyst at Sài Gòn Securities Inc (SSI), said brokerage shares have been supported by low saving and deposit rates at banks.

According to SSI, annual saving interest rates at commercial banks fell 20-50 basis points for both short- and long-term saving accounts, making depositors seek profits in other channels, including securities.

Linh said upcoming initial public offerings (IPOs) of large-cap corporations, and the launch of the derivatives market in August, would also provide more opportunities for brokerage firms as there would be more products in the market and investors should count on securities companies to seize investment opportunities. — VNS