On the Ho Chi Minh Stock Exchange, the VN-Index expanded 2.9 per cent last week, closing November 10 at 868.21 points. This is the sixth straight week of gains for the VN-Index with cumulative growth of 8.2 per cent since October 2.
Investors watch share prices on electric boards at the Bao Viet Securities Company in Hanoi
Liquidity hit a record high since the establishment of the southern bourse with an average of 195.4 million shares worth over 8.5 trillion VND (374.5 million USD) being traded per session.
However, like what happened in the previous weeks, trading focused on large-cap stocks, especially newly-listed Vincom Retail (VRE) and dairy giant Vinamilk (VNM) last week.
Vincom Retail debuted over 1.9 million shares on the HCM Stock Exchange on November 6. With a gain of nearly 27 percent in the first trading week, the company became the seventh largest company, valued at 82.4 trillion VND (3.63 billion USD).
Trading on this stock mainly happened through put-through (negotiated) transactions. On November 7 alone, foreign traders bought nearly 410 million VRE shares worth more than 16.6 trillion VND while selling 286.8 million shares worth 10.9 trillion VND.
According to market analysts, VRE may be the new factor helping the VN-Index continue its gains in the coming trading weeks.
Meanwhile, its parent company VinGroup (VIC) also increased for four consecutive sessions, up 9.6 percent for the week.
Dairy firm Vinamilk also had four growing sessions last week with gains of 12 percent. Especially, it hit the ceiling price of 7 percent growth on November 10 thanks to news of the successful auction of 3.33 per cent of capital by the State Capital Investment Corporation on the same day.
Foreign traders paid over 1 trillion VND to purchase a net 6.6 million Vinamilk shares on November 10.
According to Sai Gon- Hanoi Securities JSC (SHS), money flows still concentrated mainly in the large-cap group, helping push up prices of these shares and thereby lifting the VN-Index to new peaks.
However, market divergence continued to happen, causing profit-seeking opportunities to shrink for a large number of investors, SHS analysts wrote in a note.
“In general, the uptrend may continue over the next week but a cautious view in this period is necessary,” they said, predicting the VN-Index can cross the psychological threshold of 870 points.
On the Hanoi Stock Exchange, the HNX-Index also increased over 1.9 percent last week, ending November 10 at 106.37 points. Without the support of major blue chips, liquidity was modest with about 38 million shares worth 465 billion VND being traded per session.
Energy stocks had positive trades last week when major stocks including PV Gas (GAS), Petrolimex (PLX), PetroVietnam Drilling and Well Services (PVD) and PetroVietnam Technical Services (PVS) gained between 4.5-6.9 percent each.
Their growth was mainly driven by continuous increases in global oil prices which extended to five consecutive weeks of gains amid fears of instability in the Middle East.
Two major commodities – West Texas Intermediate (WTI) and Brent – rose by more than 2 percent last week.
According to observers, oil price hikes in recent weeks are due to efforts to cut production of major oil producers.
At the meeting of the Organization of Petroleum Exporting Countries (OPEC) on November 30, producers are expected to extend their expiration agreement to March 2018. Meanwhile, US crude production is expected to rise to 9.2 million barrels a day this year and 10 million barrels a day next year.
Analysts predict positive development in the global oil market will likely support domestic oil stocks in the near future.
Besides the oil sector, banking and rubber stocks also increased substantially last week. Major stocks in these groups saw growth of 4-14 percent