VN-Index saved by large-cap firms, but outlook gloomy

July 29, 2019 - 23:06

Việt Nam’s benchmark VN-Index recovered at the end of Monday as large-caps returned to positive territory on strong purchases.

A building project constructed by Coteccons in HCM City. The company's stock was among the large-caps that pushed the benchmark VN-Index up amid strong selling pressure. - Photo

HÀ NỘI – Việt Nam’s benchmark VN-Index recovered at the end of Monday as large-caps returned to positive territory on strong purchases.

The benchmark VN-Index on the Hồ Chí Minh Stock Exchange edged up 0.46 per cent to end at 997.94 points.

The VN-Index gained total 1.1 per cent last week.

It fell as much as 0.51 per cent during the day.

Some individual large-cap stocks drove the market up on Monday.

The large-cap VN30-Index inched up 0.08 per cent to close at 888.54 points.

In the VN30 basket, 12 of the 30 largest stocks by market capitalisation and trading liquidity increased.

Among gainers in the VN30 basket were Vietcombank (VCB), PetroVietnam Gas (GAS), Eximbank (EIB), Coteccons Construction Corp (CTD) and realty firm Vingroup (VIC).

On the other hand, 16 declined including steel producer Hòa Phát (HPG), Sacombank (STB), property developer Vincom Retail (VRE) and Vietinbank (CTG).

On the southern stock market, declining stocks outnumbered gaining ones by 193 to 109 while 57 stocks ended flat.

Investors continued to concentrate their investment in some individual large-cap stocks, thus pushing the VN-Index up to near 1,000 points, Sài Gòn-Hà Nội Securities (SHS) said in its daily report.

However, the market was still negative given the reduction of trading liquidity, therefore, the short-term outlook of the market would be unsustainable, the company said.

More than 147.8 million shares were traded on the southern bourse, worth VNĐ3.55 trillion (US$152.7 million).

Investors were paying attention to the US Federal Reserve’s meeting, which will conclude on Thursday, about interest rates. So the market may move uncertainly in the next two trading days, SHS said.

The purchases of sole large-cap stocks would not be enough to pull the VN-Index above the 1,000 point level, MB Securities Co (MBS) said in a note.

The market was running out of supportive news and information, so selling pressure may increase in the next few days so investors were able to dodge potential risks and earn some profits, MBS added.

On the Hà Nội Stock Exchange, the HNX-Index fell 1.05 per cent to close at 105.29 points.

The northern market index dropped total 0.62 per cent last week.

More than VNĐ355 billion worth of 27 million shares were traded on the northern exchange. – VNS