The trading of shares last week was mostly affected by the caution shownby traders prior to the restructuring of exchange-traded funds'portfolio.
FPT Securities Co analyst Nguyen Van Quysaid, based on the current status of liquidity, that cash has not yetbeen drawn out of the market. "However, trading has exposed the weaknessafter last week's slumps."
The market will continueto be affected by the exchange-traded funds' restructuring period andthe fourth quarter business results that are still to be announced, headded.
As there will be a great differentiationbetween stocks, Quy advised investors to accurately judge the stocks byassessing their fundamental values, rather than rumours.
Meanwhile, the VN-Index on the Ho Chi Minh City Stock Exchange lost0.8 percent, compared to December 6's close to 506.06 points. Theaverage value of trades reached 1.46 trillion VND (68.8 million USD), astrading volume averaged 86.9 million shares per session.
On the Hanoi Stock Exchange, the HNX-Index advanced 0.2 percent to66.22 points, while trading value and volume averaged over 312.4 billionVND (14.7 million USD) and 39.3 million shares.
Market indices were boosted during earlier sessions last week by theincrease of blue chips, such as private equity firm Masan (MSN),Sacombank (STB), Pha Lai Thermalpower (PPC), Vietcombank (VCB) andinsurer Bao Viet Holdings (BVH).
However, sellingpressure on speculative stocks remained high. Shares of the real estate,construction and mineral sectors, and the recent rising stars ofgarment company Mirae (KMR), Vietnam Ocean Shipping (VOS) and Idico -Petroleum Trading Construction Investment (PXL) were sold off.
This, in turn, created a spreading effect to large-cap stocks,bringing them down, despite strong buying by foreign investors. Foreigninvestors bought a total net of 145.4 billion VND (6.8 million USD) lastweek.
Although FTSE Vietnam ETF decided to add MSNand PetroVietnam Transporation (PVT) to its portfolio, trading on thetwo stocks did not come up to expectations. The buying of MSN was not aslarge as expected, while PVT was heavily sold. The PVT price haswitnessed a long period of rising, since earlier this year, thereforeprofit-taking activities were intensive.
Meanwhile,on December 15, Market Vectors Vietnam ETF announced that it willexclude PetroVietnam Construction (PVX) from its tracking and add aKorean stock, instead. The fund will reduce the proportion of Vietnamesestocks to 70 percent, from the current 72.61 percent, beginning onDecember 23.
Market Vectors Vietnam ETF is holdingmore than 3.12 million PVX shares worth 3.7 million USD, equivalent to0.96 percent of the fund's net asset value. PVX closed December 13'ssession at 2,300 VND, at only half of the price seen earlier this year.
Also, Sai Gon-Hanoi Bank (SHB) and Da Nang Rubber(DRC) will be sold to reduce its percentage in the fund. It will reduceSHB from 4.36 to 3.45 percent, and DRC from 2.49 to 1.86 percent.-VNA
FPT Securities Co analyst Nguyen Van Quysaid, based on the current status of liquidity, that cash has not yetbeen drawn out of the market. "However, trading has exposed the weaknessafter last week's slumps."
The market will continueto be affected by the exchange-traded funds' restructuring period andthe fourth quarter business results that are still to be announced, headded.
As there will be a great differentiationbetween stocks, Quy advised investors to accurately judge the stocks byassessing their fundamental values, rather than rumours.
Meanwhile, the VN-Index on the Ho Chi Minh City Stock Exchange lost0.8 percent, compared to December 6's close to 506.06 points. Theaverage value of trades reached 1.46 trillion VND (68.8 million USD), astrading volume averaged 86.9 million shares per session.
On the Hanoi Stock Exchange, the HNX-Index advanced 0.2 percent to66.22 points, while trading value and volume averaged over 312.4 billionVND (14.7 million USD) and 39.3 million shares.
Market indices were boosted during earlier sessions last week by theincrease of blue chips, such as private equity firm Masan (MSN),Sacombank (STB), Pha Lai Thermalpower (PPC), Vietcombank (VCB) andinsurer Bao Viet Holdings (BVH).
However, sellingpressure on speculative stocks remained high. Shares of the real estate,construction and mineral sectors, and the recent rising stars ofgarment company Mirae (KMR), Vietnam Ocean Shipping (VOS) and Idico -Petroleum Trading Construction Investment (PXL) were sold off.
This, in turn, created a spreading effect to large-cap stocks,bringing them down, despite strong buying by foreign investors. Foreigninvestors bought a total net of 145.4 billion VND (6.8 million USD) lastweek.
Although FTSE Vietnam ETF decided to add MSNand PetroVietnam Transporation (PVT) to its portfolio, trading on thetwo stocks did not come up to expectations. The buying of MSN was not aslarge as expected, while PVT was heavily sold. The PVT price haswitnessed a long period of rising, since earlier this year, thereforeprofit-taking activities were intensive.
Meanwhile,on December 15, Market Vectors Vietnam ETF announced that it willexclude PetroVietnam Construction (PVX) from its tracking and add aKorean stock, instead. The fund will reduce the proportion of Vietnamesestocks to 70 percent, from the current 72.61 percent, beginning onDecember 23.
Market Vectors Vietnam ETF is holdingmore than 3.12 million PVX shares worth 3.7 million USD, equivalent to0.96 percent of the fund's net asset value. PVX closed December 13'ssession at 2,300 VND, at only half of the price seen earlier this year.
Also, Sai Gon-Hanoi Bank (SHB) and Da Nang Rubber(DRC) will be sold to reduce its percentage in the fund. It will reduceSHB from 4.36 to 3.45 percent, and DRC from 2.49 to 1.86 percent.-VNA
