Shares gain despite investors' caution

Cautious psychology continued last week with eased liquidity, though the benchmark indices still managed to advance.

On Hochiminh Stock Exchange, the VN-Index added 1.27 percent to close the week at 600.57 points, while the HNX-Index on the northern bourse gained 0.84 percent to end at 87.49 points.

On the two first trading days of the week, the benchmark indices rose thanks to gains of large-cap stocks, including PetroVietnam Gas Corporation (GAS), Vinamilk (VNM), Masan Group (MSN) and insurance Bao Viet Holdings (BVH).

However, with the trading volume and value seen declining, investors remained cautious. The matching volumes on Hochiminh Stock Exchange and Hanoi Exchange decreased, respectively, 13 percent and 15 percent over the previous week.

Meanwhile, profit-booking pressures intensified on the two last trading days of the week the markets were closed on April 9 for a public holiday.

Also, the upward trend was reversed after the VN-Index approached the 610-point level. Selling activities were strong on blue chips, especially as strong net selling by foreign investors last week put the market under pressure, although they had returned to net buying the previous week.

During last week, the net selling value of foreign investors reached 503 billion VND (23.9 million USD), mainly on PetroVietnam Fertilisers and Chemicals Corporation (DPM), real estate developer Vingroup (VIC) and Hoang Anh Gia Lai (HAG).

However, Masan Group (MSN) and PetroVietnam Gas Corporation (GAS), together with stocks in the securities sector, continued to attract capital inflow, even when the market posted losses. Also, GAS on April 11 increased by 2.2 percent to 94,500 VND (4.5 USD) per share.

MSN added 1 percent to be traded at 98,000 VND (4.7 USD) on a high dividend payout ratio and target of 1 billion USD turnover for this year. Gains of GAS and MSN helped narrow the market loss on April 11.

The index for stocks in the securities sector also posted the highest increased rate last week, at 4.96 percent.

On the southern bourse, an average of 116 million shares were traded per session, with an average value of nearly 2.4 trillion VND (114.2 million USD), respectively 12 percent and 4 percent lower than the previous week.

The average trading volume and value on the capital city's exchange were 19 percent and 16 percent lower, respectively, at 71.8 million shares and 858 billion VND (40.8 million USD).

According to BIDV Securities, the Vn-Index would continue to consolidate around the 600-point level this week with low trading volume of around 100 million shares. The company said that investment chances for short-term profit takings were small.

Several securities firms forecast that the market would continue to face difficulties this week, as the benchmark indices was on a sensitive resistance band, warning short-term investors to be cautious.

However, Rong Viet Securities expected the market would improve this week as business results of some large companies would be unveiled this week and become a market stimulator.-VNA

Source: Vietnamplus

Other news

Most view

A man holds up a branch of peach blossom, which is a key feature of Vietnam's Lunar New Year traditions (Photo: VNA)

Lunar New Year holiday 2019 to last for 9 days

The 2019 Lunar New Year holiday will fall on February 4-8, which means it will span nine days including the two weekends, according to a newly approved proposal.

Banking-finance

VNPT & SeABank cooperate to enhance connections

The Vietnam Posts and Telecommunications Group (VNPT) and SeABank just co-signed cooperation agreement, aiming to develop the two sides’ economic, business and investment potential.


Economy

Vocarimex plans to expand export markets

The Vietnam Vegetable Oil Industry Corporation -Vocarimex (code: VOC) has set its target the 2018 revenue will reach VND 4,8trillion, an increasing of 9 percent compared to 2017 and pre-tax profit target will be VND 300 billlion ($ 13 million), dividend payment ratio at 12 percent.

 

Self - introduction

VNPT targets to be leading digital service provider in Vietnam

The grand opening ceremony of the VNPT-Information Technology Company (VNPT-IT), a new member of the Vietnam Posts and Telecommunications Group (VNPT), was held yesterday in Hanoi. With thousands of IT engineers and the focus on developing state-of-the-art technological products related to Artificial Intelligence (AI), Bigdata, and Blockchain, the new company is considered the main force to help VNPT fulfill the goal of becoming a leading digital service provider in Vietnam and an important Digital Hub of the neighborhood as well as the world.