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Profit-taking hits share prices in HCM City
The stock market last week witnessed profit-taking on the blue chips, as capital inflow into speculative stocks increased.
On the HCM City Stock Exchange, the VN-Index closed the first trading week of the Year of the Horse 1.2 per cent lower to 549.76 points.
However, the HNX-Index on the Ha Noi Stock Exchange rose slightly, by 0.8 per cent to 74.78 points.
Last week, the market was open only on Thursday and Friday after the nine-day Tet (Lunar New Year) holiday.
The trading volume on the southern bourse averaged 107.1 million, with the average trading value at VND1.944 trilion ($92.5 million).
On Friday, liquidity topped VND2.37 trillion ($112.8 million) on the trading of 124 million shares, while the benchmark index lost 0.89 per cent.
The profit-taking was strong on the blue chips last week, which included Masan Group (MSN), insurance company Bao Viet Group (BVH), real estate giant (VIC), Sacombank (STB) and Hoang Anh Gia Lai (HAG), causing losses and dragging down the VN-Index.
The selling by foreign investors was a factor causing these stocks to fall. On Thursday, foreign investors boosted selling with a net value of VND96.4 billion ($4.6 million).
Speculative stocks were the main supporters of the week, especially stocks in real estate, construction and transportation sectors, such as FLC Group (FLC), Dat Xanh Real Estate Company (DXG), Vitaco (VTO) and Fecon Minerals Company (FCM).
Liquidity also improved on the northern bourse on Friday with more than 80 million shares traded with a total value reaching VND621billion ($29.5million), doubling Thursday's figures.
After being net sellers on Thursday, foreign investors returned to become net buyers on Friday. Over the week, foreign investors sold a net value of VND45.2 billion ($2.5 million).
HCM City-listed Kinh Do Group (KDC) was active last week, increasing 13.3 per cent, and Ha Noi – listed PetroVietnam Construction Joint Stock Company (PVX) rose by 20 per cent.
According to Vietstock Finance, speculative stocks will remain attractive to investors in February. Profit-taking pressures on blue chips will also be a factor which will impact market transactions, together with expectations about soaring foreign capital inflows and the regulation about increasing foreign stakes at listed companies, to be issued soon, the company said.
According to FPT Securities, the stock market of Viet Nam was expected to enter a positive trend in the coming period when the regulation about increasing room for foreign investors was passed.
In the short term, the market might continue to fluctuate with gains and losses.
Viet Nam Investment Securities said that selling pressure is expected to continue this week.
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