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Indices gain despite heavy profit-taking
Shares gained value on both of the nation's stock exchanges over the course of last week despite three falling sessions resulted from rising profit-taking pressure.
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Source: VietstockFinance
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On the HCM City Stock Exchange, the VN-Index increased 0.79 per cent over the previous week, ending Friday's session at 480.10 points, while the VN30-Index, which tracks performance of the top 30 shares by market capitalisation and liquidity, rose 1 per cent to stand at 547.94.
Heavy profit-taking towards the end of the week helped improve market volume by 8 per cent over the previous week to an average of over 119 million shares and VND1.97 trillion (US$93.8 million) per session.
Market demand was mainly concentrated around low-priced shares and was not enough to maintain the balance of supply and demand as in the precious sessions, FPT Securities Co analysts wrote in a research note.
"On the other hand, the stock market has experienced a strong bullish phase since March, so downward adjustments are necessary to continue attracting investors and new cash flows to the market," they said.
Among hot sectors last week, banking shares rose 5.12 per cent; shares in the securities sector 3.26 per cent; mining shares 3.26 per cent; and real estate shares 1.48 per cent.
Ninh Van Bay Travel Real Estate Co (NVT) was the biggest gainer with an increase of 25 per cent over the course of last week. The impressive rise could be attributed to its quarterly profit of over VND2 billion ($96,000) during January-March, a recovery from consecutive losses in the past six quarters. However, the company has targeted a net profit this year of just VND3.2 billion ($153,000).
According to analysts with the financial website vietstock.vn, the stock market is currently supported by positive data, including the central bank capping lending interest rates at 15 per cent per year for selected sectors and the Government considering a business stimulus package worth VND29 trillion ($1.38 billion) in the forms of tax reductions.
"Basically, economic policy has entered a cycle of expansion to support growth," the analysts wrote. "Therefore, the stock market will likely continue to rise, though it could see several shaky sessions in the short term."
On the Ha Noi Stock Exchange, the HNX-Index gained 0.38 per cent to close Friday at 81.58 points. Daily trading volume grew by over 2 per cent over the previous week, reaching 100.4 million shares worth over VND1.1 trillion (nearly $54 million) per day.
Foreign investors concluded last week as net buyers on both exchanges, picking up a combined VND224 billion ($10.7 million) worth of shares.
On Saturday, Electricity of Viet Nam (EVN) proposed a plan to hike the electricity rates by 5-10 per cent. Analysts expect this move would cast a pall over shares when trading opens today.
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