Local bourses experience mixed fortunes
Local bourses experience mixed fortunes
Vietnamese share prices ended mixed last week, with the VN-Index at the HCM Stock Exchange falling and the HNX-Index at the Ha Noi Stock Exchange rising.
The lack of supporting good news led to the decrease of the VN-Index by a cumulative 0.37 per cent to 600.36 points while money pouring into speculative shares led to the increase of the HNX-Index by a cumulative 1.33 per cent to 90.74 points. Liquidity improved in both markets.
Trading volume in Ha Noi rose by 47.2 per cent over the previous week, averaging nearly 80 million shares worth VND1.124 trillion (US$53 million). Trading volume in HCM City likewise rose by 20.2 per cent, averaging 141 million shares worth VND2.5 trillion ($118 million).
Money inflows shifted from blue chips, securities and mining to construction and realty stocks. The real estate sector attracted the largest investment, with the most active shares in both markets in the previous week coming from FLC Group, Kinh Bac City Development, Tan Tao Investment Industry and Duc Long Gia Lai Group, as well as Development Investment Construction, Sai Gon Thuong Tin Real Estate, PetroVietnam Construction and Vinaconex.
However, KLF Joint Venture Global Investment Company (KLF) attracted the most attention with a whopping 122.5 million shares traded in just five sessions. More than 38 million of the company's shares accounting for 24 per cent of the company's charter capital were traded last Tuesday.
The price of each KLF share likewise increased by more than 17 per cent during the week, climbing from VND11,600 to VND13,600.
According to market insiders, speculators are trying to push up KLF share prices in hopes of profiting from the company's upcoming issuance of 74 million shares.
With regard to market outlook this week, many analysts predict the market to continue moving sideways, so opportunities to earn huge profits now will likely be difficult and require investors to choose the right stocks and be flexible in deciding whether to buy or sell at the right time.
"Medium-term prospects remain positive, so investors are advised to stick to medium-term portfolios," analysts at Bao Viet Securities Company noted.
According to FPT Securities Company analysts, the market can experience several fluctuations before stabilising. It is a positive sign that demand often grows when the market falls, they said.
"The current short-term support threshold is 579 points. Traders can increase holdings at this support," the analysts added.
Foreign investors ended as net sellers in HCM City last week, unloading shares worth VND399 billion ($18.8 million) and focusing on blue chips such as Kinh Do Corp, Hoang Anh Gia Lai Company, PV Gas and PetroVietnam Drilling and Wells Service.
They ended as net buyers in Ha Noi but for just a mere VND5 billion ($235,850).
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