Illustrative image (Source: VNA)Hanoi (VNA)- Shares are moving into positive territory, driven by strong investmentinflows on an optimistic market outlook expected this week.
According to analysts atViet Dragon Securities Co, both stock indices closing higher with liquidityrising robustly in the two markets last week endorsed the expected upturn inthe short term.
The benchmark VN-Indexon the HCM Stock Exchange moved sideways around 700 points in the last fivesessions and ended the week at 703.8, 0.5 percent higher than the end of theprevious week.
Liquidity improved withthe daily market value reaching 3 trillion VND (132.7 million USD) last week,up 50 percent over the previous week’s value. Trading volume increased 32.2 percent,averaging 145.5 million shares.
On the smaller exchangein Hanoi, the HNX-Index increased 1.2 percent for the week, closing at 86.04points on February 10. Trading volume was more modest with just 40 millionshares worth 373 billion VND exchanged each session, up 81.3 percentweek-on-week.
While large-cap stockssaw divergence, a big proportion of investments ran into mid-cap and small-capstocks in the weekend sessions.
Encouraging 2016 earnings reports were gainingmomentum for strong gains of rubber, steel and real estate companies, such asDong Phu Rubber (DPR), Phuoc Hoa Rubber (PHR), PominaSteel (POM), Nam Kim Steel (NKG), Consultancy Design &Urban Development (CDO), Urban Development &Construction (UDC), Sai Gon Telecommunication &Technologies (SGT) and Hoa Binh Construction & Real EtateCorp (HBC).
Among these, POM, SGT,UDC and CDO were the biggest gainers, each seeing share prices climbing 38-40 percentlast week.
“The annual generalmeetings and business plans of listed companies in 2017 could motivate theVN-Index,” Tran Hai Yen, a stock analyst at Bao Viet Securities Co wrote in amarket report.
Foreign investorsconcluded last week as net buyers for a modest net value of just 45billion VND. Shares of dairy giant Vinamilk (VNM) topped their net buys withtotal value of 156.3 billion VND. Their net buys on this share extended to 23consecutive sessions, with a total value of 936 billion VND.
Global stock marketsremained positive, especially the Dow Jones surpassing and remaining above20,000 points after the US Federal Reserve did not hike rates in its lastpolicy meeting.
However, the growth ofthe developed market, typically the US market, could cause difficulty inmaintaining investment capital, running into frontier and emerging markets,including Vietnam, according to the Bao Viet Securities Co.
“Basically, we believethat foreign indirect investment flows in Vietnam’s stock market in 2017 willbe significant compared to previous years,” Yen said.-VNA
VNA
