On the HCM Stock Exchange last week, the VN-Index concluded the weekat 430.32 points, a net gain of 1.2 percent over the previous week,after reaching a low point during the week of 424.72.
Thevalue of trades plummeted significantly, however, with the average dailyvalue of trades reaching only 424.4 billion VND (20.6 million USD), a20-percent plunge from the previous week's level.
"Lookingon the bright side, it is the very sluggish trades that may reverse theshort-term trend, allowing the Index to rise even if there is just asmall increase in demand during a session," said Au Viet Securities Coanalysts, warning investors, however, to be aware of speculative cashflows in such a session.
The southern exchange's benchmark index had four sessions of advances last week, retreating during only one session.
The rebound mostly supported blue chips, with shares such as insurerBao Viet Holdings (BVH), real estate developer Vincom (VIC) and foodproducer Masan (MSN) sustaining the VN-Index despite a lack of othersupportive information.
"However, this week these sharesmay tumble after posting gains, which could result in another greatplunge of the VN-Index," said FPT Securities analyst Nguyen Van Quy."Whenever the VN-Index nears 430 points, there is always a surge in sellorders."
On the Hanoi Stock Exchange last week, theHNX-Index declined for three out of five sessions. It nonetheless closedthe week at 72.84 points, 0.12 percent higher than the previousFriday's close.
Market value sagged, however, dipping 26percent from the previous week to an average daily value of 241.7billion VND (11.7 million USD).
BIDV Securities Co analystTong Minh Tuan predicted that the HNX-Index would decline further inthe coming week, only to recover once it fell as low as 70 points.
Earlier last week, the central bank cut interbank interest rates applicable to open market operations from 15 to 14 percent.
"The move did not bring any new information but mainly acted as anorientation to a cautious but flexible tight monetary policy," saidTuan.
Following the decrease in the interbank interestrate, an additional 4 trillion VND (194 million USD) was pumped into thenation's stock market last week.
"It can be inferred thatthe central bank is finding a new way to raise capital when the periodfor refinancing and rediscounts is coming to an end," Tuan said.
However, he also warned that any rallies would be short-lived and itwould be difficult for the market to attract sustained cash flows.
In addition, as companies were about to announce their first-halfearnings, investors preferred to keep their powder dry rather than buyin, commented Au Viet Securities Co analysts.
"With thecommon difficulties throughout the economy, firms will be unlikely toreport profitable results," they said, predicting that investors wouldcontinue to keep a cautious eye on market movements.
Foreign investors were sellers on the HCM City last week,unloading a net of 60 billion VND (2.9 million USD) worth of shares,with Vinamilk (VNM) consituting the lion's share. Meanwhile, in Hanoi, foreign investors were net buyers of a mere 9 billion VND (437,000USD) worth of shares./.