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Shares slide but outlook remains bright
The VN-Index on the HCM City Stock Exchange tumbled during all five sessions last week, concluding the week off 3.6 per cent to 509.03 points.
Trading value, however, edged up slightly to average VND1.25 trillion (US$59.5 million). But the average volume fell to 71.2 million shares.
"The market lacked speculative cash and supportive information and failed to rally," Maritime Bank Securities Co analyst Nguyen Mai Phuong wrote in a note. Negative psychology peaked when the VN-Index at times lost over 6 points, and large-cap stocks were heavily sold, such as insurer Bao Viet (BVH), property developer Hoang Anh Gia Lai (HAG), steelmaker Hoa Sen (HSG) and PetroVietnam Drilling Services (PVD).
Meanwhile, on the Ha Noi Stock Exchange, the HNX-Index slightly increased to 65.63 points compared to the previous week. The average market value reached only 85.6 per cent of the previous week's level, standing at VND421.2 billion ($20 million).
Foreign investors were net sellers last week, with a net value of VND129.4 billion ($6.1 million).
Phuong predicted shares would rally this week, with the VN-Index declining in trading early in the week and rebounding as it reached 500 points.
"We don't see any reasons for investors to sell," she said.
Last week, the two exchanges announced plans to extend trading hours one more time to 3pm, longer than the current trading time by 45 minutes. Both bourses said their technology systems were well prepared but many brokerages said the extra time would make executing payments more difficult.
Along with Phuong's prediction for the market, economic data was also positive. According to Deputy Prime Minister Nguyen Xuan Phuc, to fulfill the target of 12 per cent credit growth this year, an average of VND40 trillion ($1.9 billion) would be pumped into the economy.
By the end of this year, the Government expects to handle VND105 trillion ($5 billion) of bad debts. In addition, around 50-75 per cent of the VND30 trillion ($1.4 billion) stimulus package for the real estate sector would be spent by the end of this year.
Meanwhile, the consumer price index (CPI) this month is expected to rise slightly under 0.1 per cent, the economic news website NDHMoney.vn calculated. CPI in May slid 0.06 per cent over April. The index might inch up this month due to seasonal factors.
During the first five months, the trade deficit reached $1.2 billion, equivalent to 63 per cent of the estimated figure.
On June 12, the World Bank published its Global Economic Prospects update, which lifted Viet Nam's GDP growth forecast from 5.2 per cent to 5.3 per cent.
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