Shares increase amid signs of rising caution
Shares increase amid signs of rising caution
Although closing last Friday in the red, the VN-Index on the HCM City Stock Exchange still added 1.45 per cent over the previous Friday, standing at 398.23 points.
The total value of trades rose 3.5 per cent compared to the preceding week's level to VND2.9 trillion (US$138 billion) on an average volume of 44.7 million shares.
Meanwhile, on the Ha Noi Stock Exchange, the HNX-Index slid 1.26 per cent over the previous Friday's close to just 54.74 points.
Trading value for the entire week, however, rose slightly to a total of VND1.16 trillion ($55.9 million). Nearly 169.7 million shares changed hands.
Trading on the two national stock exchanges last week indicated growing caution along with short-term profit taking. Increasing volume last Friday was not a good signal due to high selling pressure.
"Technically, the resistance levels of 411 points for the VN-Index and 57 points for the HNX-Index are hampering the rise of the two indices," PetroVietnam Securities Co analyst Dao Hong Duong said.
Based on the above analysis, he predicted the market would see no big changes. In addition, if liquidity remains low this week, investors should continue their caution, favouring a high ratio of cash.
Many businesses released their business results for the year-to-date last week. Some blue-chips such as Refrigeration Electric Engineering Co (REE), Phu Nhuan Jewelry (PNJ), Da Nang Rubber Co (DRC) and steelmakers Hoa Sen (HSG) and Hoa Phat (HPG) were named in the list of well-performing companies.
"Although these companies enjoyed good financial reports, their shares did not improve much as they already had high prices," said Duong. The support for market sentiment from these large-caps was weakening, he added.
"In the coming time, State policies addressing major problems of the economy are the issue most investors await, particularly vital measures for solving bad debts next year," Duong said.
Last Friday, Ha Noi's consumer price index for October was reported to have inched up by 0.37 per cent against September, a lower rate than in September. Meanwhile, according to the General Statistics Office, the total deposits by credit institutions in Ha Noi is expected to hit VND870.4 trillion this month, edging up 1.5 per cent over last month.
Total outstanding loans in October are estimated to have reached VND613.5 trillion, up 0.9 per cent from the previous month.
A bank official told vnexpress.net that many commercial banks fell short of liquidity and broke the short-term interest rate ceiling of 12 per cent.
The State policy of reducing interest rates had some negative impacts on credit growth and economic recovery, the National Assembly's Economic Committee has said.
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