Investors at the Military Commercial Bank Securities Joint Stock Company (MBS). ( Photo VNA) Hanoi, (VNA) – Shares advanced steadily on March 14 on the HCM StockExchange, boosted by strong large-cap stock growth. However, analysts havewarned about volatility ahead of the US Federal Reserve’s next meeting.
The benchmark VN-Index edged up 0.64 percent to close at 714.71 points. Thesouthern market index decreased 0.3 percent on March 13.
Six of the top 10 biggest stocks by market value gained, including brewerygiant Sabeco (SAB), dairy firm Vinamilk (VNM), PV Gas (GAS), FLC FarosConstruction (ROS), private equity Masan Group (MSN) and real estate developerNovaland Investment Group (NVL).
The listing value of these six stocks accounted for over 36 percent of the HCMCity exchange’s total market value.
Money also flowed into realty stocks. The top five most heavily-traded codes onthe southern exchange were real estate firms: They were FLC Group (FLC), HoangQuan Consulting Trading Service Real Estate (HQC), FLC Faros Construction(ROS), Hoa Binh Construction (HBC) and Duc Long Gia Lai Group (DLG).
FLC was the most active with over 17 million shares traded and an increase of0.3 percent. Others saw 4-7 million shares exchanged on each stock.
Despite positive movements on March 14, stock analysts have warned about anuncertainty.
“In the short-term, the market is unlikely able to move beyond this range, asthere are many upcoming factors that could affect trade, such as the Fed’smeeting result, falling oil prices or portfolio review of exchange-tradedfunds,” analysts at MB Securities Co wrote in a note.
Investor caution could weaken liquidity and make it difficult for investors toidentify market trends, they said.
The Fed will hold a meeting on March 16 night, and the result of the two-daymeeting will be revealed on Thursday morning in Vietnamese local time. Thepositive report on the US unemployment rate has strengthened forecast for aninterest rate rise.
The Fed’s decision may have a negative impact on emerging and frontier marketsincluding Vietnam in terms of foreign withdrawal and forex movements.
On the Hanoi Stock Exchange, the HNX-Index inched up 0.2 percent to close at87.2 points. The northern market index slumped 1.3 percent on March 13.
Overall liquidity decreased with 179 million shares worth a combined 3.7trillion VND (163 million USD) traded on the two exchanges, down 6.3 percent involume and 7 percent in value compared to March 13’s figures.-VNA
