HÀ NỘI — Vietnamese stocks are expected to rise further on expectations of positive corporate earnings reports from the financial-banking sector and a strong inflow of foreign investment, analysts say.

The benchmark VN-Index rose 1 per cent to 1,115.64 points on Friday, making a second-session increase of 2.6 per cent after it had previously shut down for two days due to the technical crash late Monday.

The southern market index gained 5 per cent in three sessions last week.

Trading liquidity increased on HCM City Stock Exchange (HoSE) compared to the previous week despite the market’s Monday crash.

An average of nearly 355.6 million shares was traded on the southern bourse in each session of last week, worth VNĐ10.3 trillion (US$459.4 million).

The trading figures were up 13.3 per cent in volume and 23.2 per cent in value compared to the previous week’s numbers.

Shares also closed higher on the Hà Nội Stock Exchange on Friday with the HNX-Index edging up 0.16 per cent at 126.82 points.

The northern market index notched weekly growth of 3.6 per cent.

An average of more than 72.2 million shares worth VNĐ1.2 trillion was traded on the northern bourse.

The trading numbers fell 1.8 per cent in volume but increased 11.7 per cent in value on a weekly basis.

Đặng Thanh Thế, strategic director of KB Securities Co, said the main factor helping drive up the market was the cash flow from funds and institutional investors.

As of January 19, the exchange-traded fund VNM ETF attracted total capital of $40.15 million while the figure for FTSE ETF was $10.18 million, Thế said.

Hoàng Thạch Lân, head of the individual investor division at Việt Dragon Securities Co, said foreign investment was the main driver of the VN-Index, with large cash-flows being poured into the two exchange-traded funds (ETFs) and from these ETFs into blue-chip stocks on the southern bourse, mainly large-caps in the VN30, the top 30 largest shares by market value and liquidity on the HoSE.

The expectation that Việt Nam’s securities market could enter Morgan Stanley Capital International’s watchlist to be promoted to the emerging market status would also attract foreigners to increase net purchase value, he told tinnhanhchungkhoan.vn.

Foreign investors on Friday posted a net buy value of VNĐ461 billion on HoSE, raising their total net investment this month to VNĐ11.8 trillion.

Information related to the expansion of the foreign ownership in banks and the rise of global oil prices would also contribute to push the VN-Index to exceed its all-time peak of 1,170 points in 2007 soon, he said.

Vietcombank shares (VCB) have increased by 27 per cent since the beginning of the year. The figures for Bank for Investment and Development of Việt Nam (BID) and Vietinbank (CTG) are 27.5 per cent and 13 per cent, respectively.

Brent crude price closed Friday at $70.52, up 5 per cent from last year’s ending figure and up 57 per cent from last year’s lowest hit on June 21.

PetroVietnam Gas Joint Stock Corporation shares (GAS) have climbed 12.8 per cent since the beginning of this year. The figure for PetroVietnam Drilling & Well Services (PVD) is 26.7 per cent.

Lân said large-cap stocks in the finance-banking and securities sectors were likely to rise further, due to the strong purchasing power of foreigners, as those companies were forecast to perform even better in 2018.

Additionally, the State capital withdrawal plans in some State-owned enterprises would entice buyers, especially in the energy and chemical sectors, he added.

Among those companies, PetroVietnam Power Corporation on Wednesday will put 468 million shares for sale at its initial public offering (IPO) at the starting price of VNĐ14,400 per share.

At the IPO of the Vietnam Oil Corporation held last Thursday, the company successfully auctioned over 206 million shares at a starting price of VNĐ13,400 to earn $184 million, 51 per cent higher than expected result.

Bình Sơn Refining and Petrochemical Company earned $244.5 million from the IPO of nearly 242 million shares or 7.79 per cent of its charter capital. The result was 55 per cent higher than expected. — VNS