Market outlook positive for last week of September
Market outlook positive for last week of September
Outstanding performance of financial-banking and petroleum stocks that helped Viet Nam’s benchmark VN-Index re-take the 1,000-point level is expected to continue in the last week of September despite some caution about the US central bank’s Fed meeting on raising interest rates.
The benchmark VN-Index on the HCM Stock Exchange ended Friday at 1,002.97 points, totalling a weekly growth rate of 1.17 per cent after having risen for four of the five trading days last week.
The HNX Index on the Ha Noi Stock Exchange gained total 2.14 per cent during the week to finish at 115.80 points. The northern market index also rallied 2.7 per cent in the last four trading days.
An average of more than 282.6 million shares were traded on the two local exchanges each session, worth VND5.36 trillion (US$282.6 million).
The trading figures of the previous week were 231.2 million shares and VND4.5 trillion.
The significant increases in both trading value and volume after one week was attributed to highly active trading on Friday when exchange-traded funds (ETFs) completed their quarterly portfolio reviews, buying in some large-cap stocks and offloading parts of shares in their lists.
Among large-cap stocks that were strongly purchased by ETFs were high-end real estate firm Vinhomes (VHM) and the Vietnam Electrical Equipment Joint Stock Corporation (GEX).
Financial-banking and petroleum stocks also had a good week as they were the major driving factors for the advance of the two stock indices.
Bank stocks took turns driving the financial-banking industry forward on news that they would offload shares in other financial institutions’ capital to meet the requirements of the State Bank of Viet Nam on a below-5-per-cent cross-ownership rates.
Vietcombank in the last two weeks had announced it would sell stakes in Military Bank and Eximbank, expecting to receive around VND2.16 trillion from the deals.
The bank had previously sold its ownership, entirely or partly, in some smaller financial institutions such as SaigonBank, Cement Financial Co (CFC) and Orient Commercial Bank (OCB). Its shares (VCB) gained total 0.94 per cent during last week.
Bank stocks were also favoured by investors as they are among groups of stocks that have driven the market up in September on third-quarter earnings prospects.
Petroleum stocks benefited from the rise of oil prices with Brent crude being up total 0.9 per cent during the week.
Rising oil and gas stocks included PetroVietnam Gas (GAS), PetroVietnam Drilling and Well Services (PVD) and PetroVietnam Technical Services (PVS).
According to BIDV Securities Co (BSC), the centre of attention this week would shift to the US central bank Fed’s rate-increase meeting and the continuance of the China-US trade tension.
But analysts said investors had already prepared for a rate hike this month and their main concerns were about the Fed’s rate-hike plan during the last three months of the year.
Foreign investors were net sellers last week, posting nearly VND797 billion in total last week.
Sai Gon-Ha Noi Securities JSC (SHS) said in its weekly report that cashflow increased last week, strengthening the chance of the market to move beyond the 1,000-point landmark in the short term.
The benchmark VN-Index is forecast to increase further this week to test the 1,025-point peak but selling pressure would arise when the index touched this level, causing strong shake-ups for the stock market, SHS said.
