Investors at Maybank KimEng Securities Co in HCM City. (Photo: VNA)Hanoi (VNA) -Expectations of positive corporate earnings reports will lead Vietnamese sharesup this week, especially financial-banking stocks, analysts said.
Both local indices ended on June30 on a positive note to extend their gains for a third day and madeweek-on-week increases.
The benchmark VN-Index on the HCMStock Exchange rose 0.6 percent to finish at 776.47 points.
The HNX-Index on the Hanoi StockExchange added 0.4 percent to end at 99.14 points.
Both local indices totaled athree-day rally of about 1.1 percent and a weekly increase of 1 percent, each.
According to analysts, the riseof the stock market last week was due to the increase of large-cap shares,which were boosted by investors’ expectations of positive earnings reports inthe second quarter. Analysts forecast that will also be the main driver pushingthe stock indices further this week.
Among all 20 sectors on the stockmarket, the banking and brokerage industries are the ones whose earningsreports could meet investor expectations.
Nguyen Ngoc Lan, senior analystat Agribank Securities Co (Agriseco), said the banking sector would lead themarket up as bank stocks have also been supported by high credit demand and therecently approved resolution on dealing with bad debts.
Though the bad debt resolution,which was approved by the National Assembly on June 21, will need time to makea real impact on bank earnings, it will help bank stocks gain attention frominvestors after they were hit lately by profit-taking, Lan said.
Bank stocks, as well assecurities firm shares, will lead the stock market up in coming weeks,especially after a lull that was too long, according to Phan Dung Khanh,analyst at Maybank KimEng Securities Co.
Those stocks will be supported bypositive business information on both the sector and corporate levels, such asthe derivatives market that will be launched in August, the resolution ondealing with bad debts and the continuous rise of the stock market, he said.
Khanh added that the stock markethad risen recently after investors changed their taste from other channels,such as property, gold, foreign currency and bank saving that did not offerinterest rates as high as securities products.
In addition, the Government hadmade its best efforts to attract more investment, provide supporting policiesfor companies and draw more attention from foreign investors, he said.
In the second quarter, foreigninvestors posted a net buy value of nearly 6 trillion VND (270 million USD), aquarterly increase of 50 percent, the online newspaper tinnhanhchungkhoan.vn reportedon June 30.
Last week alone, foreigninvestors recorded a net buy value of 850 billion VND, an increase of 101.8 percentweek on week. That has helped strengthen both domestic and foreign investorconfidence in the prospects of the stock market.
For securities firms, increasingmarket liquidity also boosted prospects for additional earnings from brokerageactivities.
Last week, a total of 1.32billion shares were exchanged on both local bourses in the five trading sessions,worth 22.6 trillion VND. That raised the total trading value in Vietnam’ssecurities market in the second quarter to 270 trillion VND, a quarterlyincrease of 36 percent and a yearly increase of 70 percent.
Nguyen Duc Hung Linh, a senioranalyst at Sai Gon Securities Inc (SSI), said brokerage shares have beensupported by low saving and deposit rates at banks.
According to SSI, annual savinginterest rates at commercial banks fell 20-50 basis points for both short- andlong-term saving accounts, making depositors seek profits in other channels,including securities.
Linh said upcoming initial publicofferings (IPOs) of large-cap corporations, and the launch of the derivativesmarket in August, would also provide more opportunities for brokerage firms asthere would be more products in the market and investors should count onsecurities companies to seize investment opportunities.-VNA
Both local indices ended on June30 on a positive note to extend their gains for a third day and madeweek-on-week increases.
The benchmark VN-Index on the HCMStock Exchange rose 0.6 percent to finish at 776.47 points.
The HNX-Index on the Hanoi StockExchange added 0.4 percent to end at 99.14 points.
Both local indices totaled athree-day rally of about 1.1 percent and a weekly increase of 1 percent, each.
According to analysts, the riseof the stock market last week was due to the increase of large-cap shares,which were boosted by investors’ expectations of positive earnings reports inthe second quarter. Analysts forecast that will also be the main driver pushingthe stock indices further this week.
Among all 20 sectors on the stockmarket, the banking and brokerage industries are the ones whose earningsreports could meet investor expectations.
Nguyen Ngoc Lan, senior analystat Agribank Securities Co (Agriseco), said the banking sector would lead themarket up as bank stocks have also been supported by high credit demand and therecently approved resolution on dealing with bad debts.
Though the bad debt resolution,which was approved by the National Assembly on June 21, will need time to makea real impact on bank earnings, it will help bank stocks gain attention frominvestors after they were hit lately by profit-taking, Lan said.
Bank stocks, as well assecurities firm shares, will lead the stock market up in coming weeks,especially after a lull that was too long, according to Phan Dung Khanh,analyst at Maybank KimEng Securities Co.
Those stocks will be supported bypositive business information on both the sector and corporate levels, such asthe derivatives market that will be launched in August, the resolution ondealing with bad debts and the continuous rise of the stock market, he said.
Khanh added that the stock markethad risen recently after investors changed their taste from other channels,such as property, gold, foreign currency and bank saving that did not offerinterest rates as high as securities products.
In addition, the Government hadmade its best efforts to attract more investment, provide supporting policiesfor companies and draw more attention from foreign investors, he said.
In the second quarter, foreigninvestors posted a net buy value of nearly 6 trillion VND (270 million USD), aquarterly increase of 50 percent, the online newspaper tinnhanhchungkhoan.vn reportedon June 30.
Last week alone, foreigninvestors recorded a net buy value of 850 billion VND, an increase of 101.8 percentweek on week. That has helped strengthen both domestic and foreign investorconfidence in the prospects of the stock market.
For securities firms, increasingmarket liquidity also boosted prospects for additional earnings from brokerageactivities.
Last week, a total of 1.32billion shares were exchanged on both local bourses in the five trading sessions,worth 22.6 trillion VND. That raised the total trading value in Vietnam’ssecurities market in the second quarter to 270 trillion VND, a quarterlyincrease of 36 percent and a yearly increase of 70 percent.
Nguyen Duc Hung Linh, a senioranalyst at Sai Gon Securities Inc (SSI), said brokerage shares have beensupported by low saving and deposit rates at banks.
According to SSI, annual savinginterest rates at commercial banks fell 20-50 basis points for both short- andlong-term saving accounts, making depositors seek profits in other channels,including securities.
Linh said upcoming initial publicofferings (IPOs) of large-cap corporations, and the launch of the derivativesmarket in August, would also provide more opportunities for brokerage firms asthere would be more products in the market and investors should count onsecurities companies to seize investment opportunities.-VNA
VNA
