Investors during a trading session at the HCM Stock Exchange. (Source: www.vietnambiz.vn )Hanoi (VNS/VNA) - Althoughthe VN-Index didn’t hit the short-term target of 1,130 points last week asexpected, it has nevertheless maintained its upward trend and is forecast toopen next week’s session with positive status.
The benchmark VN-Index on the HCM Stock Exchange (HOSE) gained 0.49 per cent tosettle at 1,121.21 points on Friday, recovering from its one-day decline of0.51 percent.
Meanwhile, the HNX Index on the Hanoi Stock Exchange (HNX) inched up 0.91points to end at 128.25 points. The index was down 0.74 percent to end at127.10 points on March 1.
The two stock indices witnessed a weekly rise of 1.67 percent and 1.6 percent,respectively, due to positive investor psychology and strong cash flows pouredinto large-cap stocks.
An average of more than 286.65 million shares were traded in each session lastweek, worth 8.23 trillion VND (361.5 million USD).
The trading figures were up 19.5 percent in volume and 21 percent in value,compared to the previous trading week’s numbers.
The UPCOM Index on the Unlisted Public Company Market (UPCoM) gained slightly0.58 percent to finish at 60.17 points. The index was down 0.74 percent to endat 127.10 points on March 1.
Furthermore, the unlisted market index gained 1.02 percent after the fivetrading sessions of the week.
According to Bao Viet Securities Company (BVSC), the VN-Index is expected tosurpass the peak of 1,130 set before the Tet (Lunar new year) holidaysoon after successfully testing the 1,095-1,100 support zone and reverting toan uptrend on March 2, opening a possibility that the index will hit a recordhigh of 1,180-1,190 in the short term.
“However, the index can still experience some volatility with alternatecorrections while moving upward,” BVSC said.
BIDV Securities Company (BSC) forecast in its monthly report that the marketwill likely turn upward in March and could possibly exceed its previous recentpeak of 1,130 points and even surpass the all-time peak of 1,179 in 2007.
The market will be led by the strong cash flow poured into financial-bankingstocks, BSC said, adding that the market will receive more supportiveinformation in March.
Listed companies’ holding annual shareholders’ meetings, Q1 earningsannouncement, dividend payment plan and 2018 business plans will be short-termsupporting information for investors, greatly influencing the marketperformance in the short-term, BSC said.
The upcoming equitisation, divestment and listings of companies will alsoattract investors, it added.
Three State-owned enterprises (SOEs) will make initial public offerings (IPOs)in March. Vietnam Southern Food Corporation (Vinafood 2) will auction114.8 million shares, or 23 percent of its charter capital, on March 14.
Meanwhile, Binh Duong Manufacturing & Import Export Corp (Protrade Corp)will auction 30 million shares, or 10 percent of its charter capital on March28.
Hanoi Trade Corporation (Hapro) will auction 76 million shares or 34.51percent of its charter capital on March 30.
In terms of capital withdrawal, the State Capital Investment Corporation (SCIC)has recently announced its plan to sell 24.1 million shares at the Binh MinhPlastics Joint Stock Company (BMP) on March 9.
Notably, three major oil and gas companies, Binh Son Refining and PetrochemicalCompany (BSR), PetroVietnam Power Corporation (PV Power) and Vietnam OilCorporation (PV Oil) have or will be listed on Upcom on March 1, March 6 and 7.
“Early listing of equitised companies will contribute to increase the marketcapitalisation, adding more options for investors and involving them in theequitisation process of state-owned enterprises,” BSC said.
The HCM Stock Exchange (HoSE) will officially launch covered warrants in lateMarch, which will expand investment choice and attract more foreign capital tothe market.
This will be the fourth product traded on HCM City’s bourse, togetherwith stocks, bonds and fund certificates.
Covered warrants, issued by a securities company, allow the holder to buy (callwarrant) or sell (put warrant) the underlying stock (including shares, bonds orother securities) at a specific price on or before a pre-determined date. It isexpected to become a new investment tool for investors to reduce the chance ofrisks, and to provide more options at a lower cost, as compared to commonstocks and fund certificates.
According to BSC, the launch of covered warrant shows signs that the localmarket is renovating, integrating with regional and international markets.-VNA
VNA
