The VN Index and HNX Index will continue to rise this week and investors should wait for high prices to sell their shares for profit, according to analysts.
Investors should pay more attention to real estate and securities shares this week as these had amazing performances last week. However, these shares should be sold as they were considered unstable for investors, analysts from securities firms observed.
Some experts also said that the VN Index could approach the benchmark of 600 points and the HNX Index could meet 91.5 points this week.
The stock market strongly grew on both bourses, resulting in very high market trading volumes and trading values. Gas shares, securities shares, and real estate shares were increasing, while bank shares dropped from their performances in the previous week.
The VN Index on the HCM City Stock Exchange rose by 0.81 per cent to 582.73 points, and the HNX Index on the Ha Noi Stock Exchange closed at 87.95 points, with an increase of 1.43 per cent.
Market liquidity increased against the previous week and remained high during last week as domestic investors enhanced their confidence on the stock market. On the southern bourse, an average of 163 million shares, worth VND2.6 trillion (US$120 million), were traded each session. On the Ha Noi market, traders recorded an average of 75.7 million shares, worth VND949 billion ($44 million), each session.
The growth of market liquidity was also supported by some policies that the State Securities Commission drafted to allow investors to buy and sell shares within one trading day.
Bank shares fell as investors tried to sell them for profit taking. The shares of large-cap bank, such as Vietcombank, the Bank for Investment and Development of Viet Nam, Sai Gon-Ha Noi Bank, and Asia Commercial Bank, fluctuated strongly and had a negative influence on the market last week.
However, the market still improved as money flowed into security shares, gas shares, and real estate shares. Petrovietnam Gas Corporation and Petrovietnam Drilling&Well Service Corporation gained during the week to keep the market upward. Security shares such as HCM City Securities JSC, Sai Gon Securities JSC, and IB Securities JSC also contributed to the growth of the market.
Large firms that operated in the real estate industry, including FLC Group, Tu Liem Urban Development JSC, and Vingroup JSC rose last week to ensure stability in market growth. However, these shares will not be stable for investors, according to experts.
Foreign investors remained net buyers on the Ha Noi stock market last week, with a total buy value of VND77.8 billion ($3.6 million), a decrease of 28.5 per cent over the previous week.
PVS was the share that received the strongest foreign investment, with total VND38.8 billion ($1.8 million), nearly half of the market’s total foreign investments. Drilling Mud Corporation and VNDirect Securities JSC were two other shares that foreign investors bought most on the market.
In contrast, they turned from net buyers in the previous week to net sellers last week on the HCM City stock market, recording a total sell value of VND31.5 billion (1.45 million).
Hoang Huy Investment Service JSC, Petrovietnam Fertiliser and Chemicals Corporation, and Hoa Phat Group JSC were the three shares that foreign investors sold the most last week, for VND60 billion ($2.78 million), VND51 billion ($2.36 million), and VND50 billion ($2.3 million), respectively.