Illustrative image (Source: VNA)The benchmark VN-Index on the HCMStock Exchange decreased slightly last week for a second week on volatilityfrom the US Federal Reserve (Fed)’s meeting, and trading by big exchange-tradedfunds (ETFs) in their first-quarter portfolio reviews.
The VN-Index inched down 0.23 percentfor the week, closing at 710.54 points on March 17.
The Fed’s decision to hike itsbenchmark interest rate for the second time in the last three months had anegligible impact on the local securities market, but trading of the two ETFs(FTSE and VNM ETFs) made the market volatile and pushed up liquidity.
Trading volume on the southernexchange decreased 8.8 percent from the previous week, averaging nearly 171million shares per session, but the daily trading value increased 5.4 percentweek-on-week to reach 3.9 trillion VND (171 million USD).
On the smaller Hanoi Exchange, theHNX-Index gained 0.3 percent for the week, ending at 88.4 points on March 17.
The daily trading volume here wasunchanged compared to the previous week at 49.6 million shares, but value oftrade grew 21.3 percent to an average of 635.4 billion VND per session.
ETF’s trading was on the investorradar last week. Share prices of FLC Faros Construction (ROS) and NovalandInvestment Group (NVL) declined strongly even though these stocks were added tothe baskets of the two EFTs.
Prices of both shares have lost over10 percent in the last three sessions.
“This movement was mostlyattributable to investors’ strong buys of these stocks in the previous sessionsand massive sales in the weekend sessions in order to profit from the purchaseof the two ETFs,” said Tran Duc Anh, a stock analyst at Bao Viet SecuritiesJoint Stock Company.
Meanwhile, purchase volume of thesefunds was modest and could not absorb great supply volume from domesticinvestors, Anh added, warning that a tumble of these stocks which have greatinfluence on the market could pose a high risk of extended negatives in themarket movement this week.
Many large-cap stocks also droppedlast week, including brewery giant Sabeco (SAB), PV Gas (GAS), real estatedeveloper VinGroup (VIC), steelmaker Hoa Phat Group (HPG) and budget airlineVietjet (VJC).
According to BIDV SecuritiesJoint-Stock Company, the VN-Index will likely rebound after a downward movementfrom the ETF portfolio restructuring at the end of last week. However, themarket trend will continue to depend on large-cap stocks, which recorded greatdivergences last week.
“Money flows will continue to seekstocks with good business prospects and positive information,” they wrote in aweekly market report and predicted the VN-Index would move around 710 points.
After the Fed’s decision, foreigncapital has not been withdrawn from the domestic market and continued to pourinto local shares, boding well for market recovery.
Foreign investors were responsiblefor total net buy values of over 225 billion VND on the HCM City’s exchange andthey sold net values of 54.6 billion VND on the Hanoi’s bourse.
In addition, investors will payattention to information of annual shareholders’ meeting of listed companies,as well as their first-quarter business results.
Noticeable shareholders’ meetings inthe next two weeks will include BIDV Insurance Corp (BIC), PetroVietnam LowPressure Gas Distribution JSC (PGD), information technology FPT Corp (FPT) andits arm FPT Securities Joint Stock Co (FTS), Vietnam Electricity Construction(VNE) and Saigon General Service Corp (SVC).-VNA
VNA
