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Cautious investors keep powder dry after holiday
Prolonged investor wariness following the National Day holiday held the stock market in check, accompanied by weak trading volume and value on both bourses
On the HCM City Stock Exchange, the VN-Index finished last Friday's session at 397.51 points, gaining 0.38 points over the course of the previous week, while the HNX-Index on the Ha Noi Stock Exchange declined by over 1 per cent to close the week at 60.39 points.
Trading was sluggish throughout the week, with the daily trading volume averaging just 29.4 million shares per session on the HCM City bourse and just 23.8 million shares per session on the Ha Noi bourse, down 16 per cent and 18 per cent, respectively, from the previous week's levels.
"The absence of positive macroeconomic information is hindering the market from recovering," wrote Nguyen Van Quy, a stock analyst of FPT Securities Co, in a research note.
"Under this trend, apprehension will dominate the market and drive liquidity lower in the near future. If cash flows don't improve, the market won't have a chance to recover and grow," Quy said, noting that gains of several bue chips were not convincing enough to draw stronger investment.
According to market insiders, investors are overly cautious now, particularly after the arrest of Duong Chi Dung, former director of Viet Nam Maritime Department and former chairman of Viet Nam National Shipping Lines (Vinalines).
"Recently, such information has had a very strong impact on the market," analysts commented on the financial website vietstock.vn.
Only three out of 24 stock groups posted gains over the week, led by rubber shares with an average gain of 2.72 per cent, while securities stocks were the biggest loser with an average loss of 4.23 per cent.
Vinacomin – Ha Tu Coal Co (THT) was the biggest gainer on the Ha Noi exchange with an increase of over 21 per cent. The increase of THT, as well as gains of other mining shares last week, were attributed to the potential increase in the price of coal later this year.
At the same time, shares of sugar producer Sucrerie De Bourbon Tay Ninh (SBT) were the biggest gainer on the HCM City exchange with an increase of more than 15 per cent. This was due to information revealing the share is set to be included in the FTSE Viet Nam Index from September 24.
Along with SBT, the FTSE also announced on Friday the inclusion metal producer Hoa Sen Group (HSG) and PetroVietnam Low Pressure Gas Distribution (PGD) to the FTSE Vietnam Index this month, while removing shares of confectionery company Kinh Do Corp (KDC), Pha Lai Thermal Power (PPC), logistics firm Gemandept (GMD) and Phu Nhuan Jewelry (PNJ).
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