Speculation buoys markets
Speculation buoys markets
Friday's losses were not enough to reverse overall net gains on both of the nation's stock exchanges last week, where heavy speculation ahead of the third-quarter earnings season helped boost share values.
On the HCM City Stock Exchange, the VN-Index climbed 1.13 per cent over the week, closing on Friday at 392.54 points, while on the Ha Noi bourse, the HNX-Index also jumped by 2 per cent to close at 55.44 points.
The value of trades improved on both exchanges, with the average daily value on the HCM City exchange increasing by 49.2 per cent over the previous week to about VND564 billion (US$26.9 million). Value on the Ha Noi bourse also soared 68.7 per cent, averaging VND233 billion ($11 million) per session.
Analysts commented on the financial information website vietstock.vn noted that money poured into mining and petroleum stocks during the week, such as Lao Cai Mineral Exploitation & Processing (LCM), Vietnam Electricity Construction (VNE), PetroVietnam - Nghe An Construction (PVA) and property developer PetroVietnam Dong Do (PFL).
"Investor greed increased and speculative cash was aimed at companies releasing third-quarter earnings," they wrote. "However, to protect the fruits, investors have to quickly realise profits. ‘Quick sell, quick win' was the prevailing market strategy and the reason stock indices fluctuated strongly throughout the week. However, demand remained relatively stable which sustained the market uptrend."
The uptrend led by speculative stocks could constitute a potential risk for the market this week as the market might not find another leading sector, cautioned Bao Viet Securities Co analyst Pham Tien Dung.
"In our opinion, the market is highly likely to fluctuate this week and the downtrend will still prevail," Dung wrote in a research note, advising investors to decrease stock exposure in advancing sessions and avoid bottom-fishing in declining sessions.
Foreign investors last week returned to being net buyers after two consecutive weeks of sell-offs. They picked up shares on both exchanges worth a combined net of VND145 billion ($6.9 million)
vietnamnews
