Vietnamese shares to struggle with profit-taking before Tet break

The Vietnamese stock market will take a break for the Tet (Lunar New Year) holiday on Thursday and the upcoming three-day period may be a good chance for investors to earn some profits.

 

The benchmark VN-Index on the Ho Chi Minh Stock Exchange gained 0.48 per cent to close Friday at 978.96 points, totalling a four-day increase of 1.36 per cent and weekly growth of 1.07 per cent.

The HNX-Index on the Ha Noi Stock Exchange ended last week at 103.88 points, up a total 1.62 per cent after one trading week.

The stock market was driven by the strong performance of bank stocks, which made strong gains on investors’ expectations for better business operation in 2020.

The three largest banks by market capitalisation on the Ho Chi Minh Stock Exchange – Vietcombank (VCB), Vietinbank (CTG) and Bank for Investment and Development of Vietnam (BID) – took turns to lift the market.

Vietcombank shares ended last week at a new high of VND94,500 (US$4.07) per share, totalling a weekly gain of 5.6 per cent. Vietinbank shares jumped 5.9 per cent and BIDV shares moved up 4.3 per cent during the week.

Large-cap stocks remained the focus. Vietcombank, Vietinbank and BIDV were among eight of the 10 largest stocks by market value on HoSE to make weekly gains.

Steel companies also had a good week, including Hoa Phat (HPG), Hoa Sen (HSG), Nam Kim Group (NKG) and Viet Nam-Italy Steel JSC (VIS).

HPG jumped 3.3 per cent, HSG gained 4.3 per cent, while NKG and VIS soared 10.6 per cent and 16.9 per cent during the week, respectively.

Meanwhile, investors were unwilling to bet on mid-cap and small-cap stocks.

PetroVietnam Low Pressure Gas JSC (PGD) slumped a total of nearly 30 per cent last week.

The company last week announced the Japanese firm Saibu Gas Co Ltd bought 18 million PGD shares to own 21 per cent of the Vietnamese firm.

Foreign investors net-bought a total of VND370 billion worth of local stocks on the two exchanges, boosting market sentiment slightly.

But market liquidity and sentiment remained low, Sai Gon-Ha Noi Securities (SHS) said in its weekly report.

Market trading liquidity drained as it always did in previous years when Tet approached, SHS said.

Investors were still doubtful about chances the stock market would recover, the company said.

But the strong performance of listed banks’ stocks would extend market growth a little bit longer before the market closed for the holiday, SHS added.

The VN-Index is being twisted by the over-expectation investors have in bank stocks, Asean Securities Co said in a note.

The market growth this week would depend a lot on listed banks while investors would have to seek other sectors to take the spotlight, the company said.

Both SHS and Asean SC forecast the VN-Index would move between 970 points and 990 points in the next three trading days.

The firms said the VN-Index would struggle with profit-taking that arises to take advantage of bank stocks’ strong growth last week.

The stock market will trade on Monday, Tuesday and Wednesday before taking a break on Thursday for the Tet holiday. It will return to action on Thursday, January 30, 2019.

PM rings the bell

Prime Minister Nguyen Xuan Phuc will hit the gong at the Ho Chi Minh Stock Exchange on Thursday, January 30 to begin the first trading day of the new lunar year.

In previous years, the Prime Minister rang the bell at the Ha Noi Stock Exchange to start the new lunar year for the stock market.

According to the Prime Minister, the change will bring a new momentum for the Vietnamese stock market in the Year of the Mouse. The action also demonstrates the Government’s determination to complete the policies and activities to boost the local markets.

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BID 47,000 -1,800 -3.69%
CTG 25,800 -300 -1.15%
HPG 22,750 -350 -1.52%
HSG 7,750 -130 -1.65%
NKG 8,390 -180 -2.10%
PGD 39,400 1,450 +3.82%
SHS 6,900 200 +2.99%
VCB 85,000 -1,200 -1.39%
VIS 23,200 0 %

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