The selling of brewer Sabeco shares should give a short boost to the market.(Photo: cafef.vn)Hanoi (VNA) -Vietnamese shares are expected to move marginally in the last two trading weeksof 2017 as investors take a rest, however the selling of brewer Sabeco sharesshould give a short boost to the market.
Both local markets closeddown last week, extending their losing streaks for a second week in a row oninvestor caution amid the portfolio review of exchange-traded funds (ETFs).
Both the benchmark VN Indexon the HCM Stock Exchange and the HNX Index on the Hanoi Stock Exchange fell onDecember 15to finish last week at 935.16 points and 111.61 points,respectively.
The two stock indicesdropped a total of 0.5 percent and 1.9 percent last week, making their totaldecline in the past two trading weeks to 3.6 percent and 4.4 percent.
In general, the benchmarkVN Index has increased by 40.6 percent since last December 30, and the HNXIndex has risen 39.3 percent during the same period.
An average of 246 millionshares was traded in each of the five sessions last week, worth 5.07 trillionVND (225.4 million USD).
The trading figuresaccounted for 88.6 percent and 87 percent of the previous week’s average dailyvolume and value.
Increased selling pressureand rising investor caution amid ETFs’ portfolio restructuring were the twomain reasons the indices fell lower last week.
Selling pressure focused onlarge-cap stocks, which often play an important role in driving the stockmarket.
Foreign investors last weekrecorded a net sell value of total 460 billion VND on both local exchanges.They had made a net buy value of a total of 1.15 trillion VND in the previoustrading week.
Financial and bankingstocks were among those hit by strong selling-out pressure. Leading shares inthe financial-banking sector, such as Vietcombank (VCB), Bank for Investmentand Development of Vietnam (BID), Vietinbank (CTG) and insurer Bao VietHoldings (BVH), were down between 2.2 percent and 10.8 percent.
Other large-cap stocks thatalso underperformed were food and beverage Masan (MSN), property developerVingroup (VIC) and FLC Ros Construction Corp (ROS).
Nguyen The Minh, deputydirector of research and investment at Saigon Securities Inc (SSI), said themarket would move sluggishly in the next two weeks as it was under heavy pressurefrom the volatility of large-cap stocks. The inflow of money was limited bysecurities firms’ margin calls.
Investor sentiment hadshown improvement because of major market news that could have big impacts onstock movements, such as the US central bank’s interest rate hike and the ETFs’portfolio review, and a part of margin lending has been diminished, AgribankSecurities Company’s (Agriseco) head of brokerage, Nguyen Ngoc Lan, told thenews site tinnhanhchungkhoan.vn
Lan said those factors hadled to the downturn of investor confidence and the decline of market tradingliquidity in recent weeks, adding that “fresh money” from both domestic andforeign investors was expected to boost the market.
Both analysts suggestedinvestors hold onto an investment portfolio that has 50 percent in cash and 50 percentin assets with a focus on companies that could release good earnings for thefourth quarter of the year, such as real estate, steel production andpharmaceutical firms.
The Ministry of Industryand Trade, on behalf of the Government, will offer more than 343.6 millionshares or 53.59 percent of the largest brewer Sabeco (SAB) for sale on December18 at the starting price of 320,000 VND per share.
Analysts and investors areexpecting the share sale will help lift the stock market as Sabeco is thesecond largest company by market capitalisation and the highest share price.Its movement has big impacts on investor sentiment and market tradingdirections.
If successful, it will defyexpectations that the ministry and the Government may not be able to sellshares much higher than the initial auction price of 320,000 VND, Lan atAgriseco said.
“In that case, Sabecoshares will lead the market up strongly and keep investor confidence positive,"she said. Sabeco shares closed December 15 at 309,200 VND per share, about3.4 percent lower the auction price of 320,000 VND per share.
SSI analyst Minh said themajor concerns for strategic investors like Thai Beverage (ThaiBev) were theprospects of Sabeco in particular and of the Vietnamese beer industry ingeneral.
“If the auction issuccessful, the foundation pricing of the consumer sector and the whole marketwill be raised and next Government’s stake sales will receive better attention,thus bringing more opportunities for the Vietnamese stock market,” Minh said.-VNA
VNA
