Trading ends week at a low
Trading ends week at a low
Benchmark indices closed lower last week on both national stock exchanges as profit-booking pressure intensified, though slight recoveries were seen during the final trading session.
The VN-Index on the HCM City Stock Exchange lost 1.24 per cent to end at 594.29 points, while the HNX-Index on the northern bourse closed 0.35 per cent lower at 90.04 points.
The market was seen opening the week with a gain, boosted by speculative stocks of real estate, construction and securities sectors, with the VN-Index approaching the 610-point level. Meanwhile, blue chips suffered from the selling pressure of foreign investors.
However, as investors sold stocks to take profits, shares reversed the upward trend, closing in the red on Tuesday and Wednesday.
According to analysts from Vietstock.vn, the net selling of foreign investors on blue chips was a major cause for the investors' growing caution.
While the benchmark indices posted losses on Tuesday and Wednesday, the trading volumes and values were the highest during the week. On Tuesday, the trading value on the southern bourse topped at VND5 trillion (US$238 million) on the exchange of 261 million shares, while the figures on the Ha Noi Exchange were VND1.7 trillion ($80.9 million) and 147 million shares.
The market witnessed a recovery on the final trading day of the week, as the bottom-fishing capital flow became more active, which helped improve investors' confidence. Stocks of securities, real estate and construction sectors soon regained their attractiveness.
However, liquidity eased along with the benchmark indices' gains. On HCM City Exchange, the trading value averaged VND3.48 trillion ($165.7 million) on the exchange, with an average volume of nearly 197.8 million shares.
The average trading volume and value on the northern bourse reached 118.5 million shares and VND1.38 trillion ($65.7 million).
Foreign investors boosted selling last week, on stocks such as Masan Group (MSN), Hoang Anh Gia Lai (HAG), Vingroup (VIC) on HCM City Exchange and PetroVietnam Technical Services Corporation (PVS), Vinaconex (VCG) and Sai Gon-Ha Noi Bank on the Ha Noi Exchange.
Meanwhile, FPT Securities said it worried that foreign investors would continue to be net sellers, which would have a negative impact on benchmark indices.
Still, the company said that the market might not witness huge losses, supported by positive macroeconomic information, as well as expectations about first quarter business results.
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