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Holidays prompt profit-taking
Strong profit-taking and renewed investor caution gave the VN-Index its first declining week last week, after eight straight weeks of increases.
The Index slid 24.24 points overall last week to close at 309.90, a loss of 7.25 per cent from the previous Friday's close and well off the month's peak of 347.07.
Trading volume also declined a whopping 39 per cent from the previous week, averaging 30.6 million shares per day, while daily turnover averaged around VND741 billion (US$41.2 million), a fall of 38 per cent.
Most major stocks fell significantly, with Saigon Securities Inc (SSI) off 22 per cent and Refrigeration Electrical Engineering (REE) down 20 per cent.
Automotive shares plunged the furthest, according to FPT Securities Co data, off 19.13 percent, followed by insurance shares, down 14.32 per cent, and banking and financial shares, lower by 13.87 percent.
Only natural resources stocks managed a slight gain, up 6.38 per cent.
Foreign investors showed modest activity last week, responsible for a volume of 21.5 million shares. They were net sellers of 2.1 million shares, worth VND34.6 billion ($1.9 million).
"The most remarkable points on the domestic stock market last week were a move by investors to realise profits and a strong adjustments of the shares that direct the market, especially financial shares and some shares that have experienced hot increases over the last two months," said Ngo Anh Tuan of FPT Securities Co's brokerage department.
"Worries about the first-quarter business results of listed enterprises, to be released soon, along with the psychology of getting ready for the May Day holidays, much influenced investors to sell," Tuan said.
"It's possible that the market will continue to fall, but this is also a good opportunity for investors who want to restructure their porfolios as well as those who missed the wave of the last rally," Tuan said, predicting the VN-Index would range between 300 and 322 points this week.
In a quarterly reported issued on Friday, FPT Securities Co assessed the stock market as stable and with a capacity to rally in the second quarter of this year, if positive changes were seen in the world and domestic economies.
"The second quarter of 2009 will not be able to generate any breakthrough, as Government fiscal policies need more time to take effect, but stability is expected during this period," the report said.
"The financial market in general and the stock market in particular will gradually improve, having escaped their worst period."
"With quite a lot of companies posting impressive first-quarter business results, and fairly positive signs for the economy in the coming weeks, we assess now is a suitable time to join the market," said EuroCapital Securities Co analyst Ngo Van Minh, recommending shares in firms with "solid fundamental foundations" and the potential to produce satisfactory results in 2009.
In Ha Noi last week, the HASTC-Index plunged 10.08 per cent to end last week at just above 110, a loss of 12.36 points from the previous week.
Trading volumes averaged at 14.7 million shares, a decline of 40 per cent, while average daily value fell by nearly half to around VND349 billion ($19.4 million).
The HASTC-Index was expected to range between 105 and 120 points this week, Tuan forecasted.
FPT Securities' quarterly report said there was a high possibility that the VN-Index would range between 270 and 370 in the second quarter, while the HASTC-Index was likely to range between 95 and 130.
VietNamNet, Viet Nam News
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