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Institutions help drive market
Stronger participation in the market by foreign and institutional investors helped lift the VN-Index to 366.22 at the close on Friday, up 13.86 from the end of the previous week.
Both the HCM City and Ha Noi markets saw record volumes during last Wednesday's session, with combined total value on both markets surpassing VND3 trillion (US$168.5 million) on the day.
Total turnover for the week on both markets reached VND9.1 trillion ($511.2 million) and a volume of 332 million shares, according to Vincom Securities Co data.
Vincom Securities Co said that enthusiastic participation of foreign and institutional investors was helping drive the market.
"Over the last three sessions, we realised an obvious and increasing accumulation from these investors," said the company in a report, noting that buys were concentrated on major shares showing promise for long-term, stable growth.
During the week, foreign investors become net buyers of 15.4 million shares, worth a total of VND573.9 billion ($32.2 million).
On the HCM City Stock Exchange, Sacombank (STB) was the most heavily traded share, with 32.43 million traded, followed by Sai Gon Securities Inc (SSI) with 12.1 million, and the Cables and Telecommunication Materials (SAM) with 10.4 million.
John Nolan, an analyst with a HCM City-based fund management company, said that the heavy volume was reflective generally of investor expectations for market growth.
"It means confidence is getting stronger, and in some ways ensures further, more stable movement for the market," said Nolan.
International trends were seen as supportive to the domestic market, with results this week from the US Federal Reserves "stress tests" to measure the stability of the banking system suggesting major US banks faced no major risk of insolvency.
"The most obvious impact from the US market is psychological, as people believe that the US recovery signals an easing of the global downturn," said Hoang Xuan Quyen, head of analysis and investment at Tan Viet Securities Co.
Quach Manh Hao, an analyst with Thang Long Securities Co, warned investors to be wary this week because recent spikes in trading volume have "signalled adjustments, not a sustained upward trend.
Nevertheless, Vincom Securities predicted the VN-Index would achieve 393 this week, still driven by acquisitions by foreign and institutional investors.
In Ha Noi last week, the HASTC-Index also added 14.11 per cent on the week to end Friday's session at 131.23, backed by heavy trading in financial shares.
Asia Commercial Bank (ACB) was the most-active share on the northern bourse, with 24.95 million traded, followed by Kim Long Securities (KLS) with 19.5 million. Newcomer Sai Gon-Ha Noi Bank (SHB) also saw a brisk 7.8 million shares change hands.
Vincom Securities forecast that the HASTC-Index would reach 150 this week and suggested domestic investors buy what foreign investors were buying.
VietNamNet, VietNamNews
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