The market reversed the bearish course and finished the week higher in the last minutes. Foreign capital also showed a signal of improvement as foreign investors net bought on both main exchanges.
Shares retreated from the morning trade on Thursday, weighed by strong selling activities after the VN-Index surpassed the key psychological level of 1,100 points.
Shares maintained an uptrend on both stock exchanges, fuelled by solid cash inflows. Real estate and construction sectors led the gains.
The Ministry of Finance has proposed reducing a number of fees by between 10 to 50 per cent.
The profits of listed companies are expected to recover in the second half of the year after performing poorly in the first quarter, buoyed by the recent supportive policies from the Government, said analysts at securities firms.
Benchmark indices extended rallies on risk-on sentiment, with the VN-Index hitting the highest in more than five months. Meanwhile, foreign investors withdrew capital from the southern market.
Despite the substantial contribution of foreign direct investment to Vietnam’s overall economy, the presence of foreign-led groups in the stock market remains disproportionately meagre and fails to reflect its true significance, experts point out.
Securities firms operating in Vietnam’s highly profitable brokerage services sector catering to international clients and institutional financiers must elevate their service standards to attract discerning clients, as intensified competition necessitates enhancing capabilities to meet the demands of foreign investors.