Investors conduct transactions at the Bao Viet Stock Jsc Exchange in Hanoi (Photo: VNA)Hanoi (VNS/VNA) - Vietnamese shares have risen during thelast three sessions on both the local exchanges, but this rally is not expectedto sustain through the last trading week of August.
This is because investors will try to accrue profits from theirrecent gains, while supportive business-market information is lacking,according to experts.
The benchmark VN Index on the HCM Stock Exchange gained 0.24 percentto finish the last trading week at 771.63 points. It has rallied totally 1.4 percentover the last three sessions.
The HNX Index on the Hanoi Stock Exchange added 0.34 percent toend August at 102.64 points, extendingits gain for a third day with a total growth of 1.8 percent.
The three-day rallies of the two indices helped them recoup thelosses incurred in the first two sessions of the week and end the trading weekhigher than the previous one.
The VN Index posted a weekly gain of 0.3 percent, and the HNXIndex rose 1.8 percent week on week.
The three-day rallies on both the local exchanges were attributedto the improvement in the bank stocks, which benefited from a draft circularreleased by the State Bank of Vietnam to collect public opinions on theextension of the schedule requiring commercial banks to reduce their maximumratio of short-term funds used for medium- and long-term loans from 60 percentto 40 percent.
The current timeline requires the commercial banks to reduce by2018 the maximum ratio of short-term funds used for financing medium- andlong-term loans, while the draft circular suggests the commercial banks shouldcomplete the action by the end of 2019.
The news boosted bank stocks such as MBBank (MBB), Vietcombank(VCB), VPBank (VPB) and Asia Commercial Bank (ACB). These bank stocks advancedbetween 0.7 percent and 6.5 percent in the last three sessions.
Energy stocks were also supported by the rising oil prices duringthe week. Brent crude rose 1.4 percent since Monday, pushing up the prices ofPetroVietnam Gas (GAS), PetroVietnam Drilling and Well Services (PVD) andPetroVietnam Coating (PVB).
Speculative stocks also performed well, including those ofproperty developer FLC Group (FLC), FLC Faros Construction (ROS), FIT Group JSC(FIT) and Benovas Pharmaceutical Company (DCL).
FLC and FIT increased by one-fifth each during the week, DCL surgednearly 10 percent and ROS advanced 4.8 percent.
According to the brokerage firms, the markets would facedifficulty in extending their gains this week, as investors would try to takeprofits from the recent gains in the share prices, such as those of banks andproperty developers.
BIDV Securities (BSC) wrote in its weekly report that the marketrallies received strong support from speculative stocks, while the trading ofblue chips was not positive, therefore, the rallies were not stable and strongenough.
In the coming week, if investors continue to keep focusing onlower-priced, speculative stocks, rather than making investment in large-capones, they could make large-cap stocks suffer and increase the risk of marginlending for the market, BSC said.
According to Vietnam Investment Securities (IVS), the currentmarket conditions are not attractive enough for investors, as there is a lackof supportive news and information.
It also explained why the daily average trading liquidity lastweek fell from the previous number, as investors would rather keep their moneysafe and secure, than disburse it into local stocks.
According to vietstock.vn, more than 232.8 million shares, worth 3.28trillion VND (146 million USD), were traded on both the local bourses in eachsession.
Last week’s daily average trading numbers were down 2.5 percent involume and 22 percent in value from the previous week.
Ngo The Hien, head of market analysis division at Sai Gon-HanoiSecurities (SHS), told tinnhanhchungkhoan.vn during a round-table discussionthat the VN Index had moved narrowly in the range of 759 and 777 points for thepast two weeks.
“There is little chance for the benchmark index to make a jumpnow, because it is facing strong resistant levels ahead.”
“It will narrowly move between 760 and 780 points in the comingweek, and hopefully, it will end August at 780 points,” Hien said.-VNA
VNA
