Shares stagnant despite ETF portfolio restructuring

June, 22/2019 - 07:38

Shares moved little on Friday despite it being the last trading day for exchange-traded funds (ETFs) to restructure their second-quarter portfolios.


An engineer operates a machine at Nhơn Trạch 2 thermal power plant. Shares of PV Power (POW) were bought heavily by foreign investors, with the total net buy reaching a value of VNĐ85.5 billion on Friday. — VNA/VNS Photo Huy Hùng

HÀ NỘI Shares moved little on Friday despite it being the last trading day for exchange-traded funds (ETFs) to restructure their second-quarter portfolios.

On the Hồ Chí Minh Stock Exchange (HOSE), the VN-Index closed unchanged at 959.20 points. Despite two declining sessions early in the week, the southern market index still gained 0.6 per cent for the whole week.

Liquidity hit a one-month high thanks to robust trading by ETFs. More than 206 million shares worth VNĐ5.45 trillion (US$234 million) were traded on the HCM City’s exchange, the highest since May 21.

Foreign trading was more robust as Friday was the last trading day for the two ETFs – VanEck Vectors Vietnam ETF (VNM ETF) and FTSE Vietnam ETF – to review their quarterly portfolios. With most of their portfolio stocks traded on the HOSE, trading focused on this bourse with total trading value of nearly VNĐ3.8 trillion, of which buying value reached VNĐ1.7 trillion and selling value reached VNĐ2.06 trillion.

Being included in both ETFs’ portfolios in the next quarter, shares of PV Power (POW) were bought heavily by foreign investors with a total net buy value of VNĐ85.5 billion. Its price rose in the morning but then declined by 0.7 per cent to VNĐ15.400 per share.

Meanwhile, despite being having a reduced weight in FTSE Vietnam ETF’s portfolio, foreign traders continued to buy shares of steelmaker Hòa Phát Group (HPG) for net value of more than VNĐ18 billion. HPG's shares increased by 0.4 per cent on Friday.

Being excluded from two ETF portfolios, shares of Sacombank (STB), PetroVietnam Fertiliser and Chemicals (DPM) and Hoàng Anh Gia Lai Agricultural JSC (HNG) were sold heavily. Prices of these shares decreased by between 0.4 and 1.8 per cent each.

Without the support of foreign trading, the HNX-Index on the Hà Nội Stock Exchange edged down 0.2 per cent to close Friday at 104.85 points. After gaining in the four previous sessions, the northern market index rose 1.34 per cent for the week.

More than 37 million shares worth VNĐ361 billion were traded on the market.

According to Bảo Việt Securities Co (BVSC), the market may face volatility and correction early next week before rebounding toward the resistance zone of 965-966 points.

“This resistance zone can be considered a challenge to the VN-Index in the short run," Trần Xuân Bách, a BVSC stock analyst, wrote in Friday’s market report. "Thus, we leave open the possibility that the market will reverse direction, going down when facing this zone next week."

In its daily report, BIDV Securities suggested investors closely watch key international events such as the G20 summit with possible talks between the US and China and volatility in world oil prices due to escalating US-Iran tension. VNS