Both stock markets registered corrections last week after seeingsubstantial gains in their earlier rallies. Analysts predict this phasecould continue into the early sessions of this week.
On the HCMStock Exchange, downward corrections appeared after the benchmarkVN-Index hit its five-year peak of 640 points in July 14 trading,narrowing the weekly gain to just 0.22 percent to close at 628.63 pointson July 17.
Further, leading stocks, such as banks and insurers,lost steam in mid-week trading that resulted in the Index failing torise above the 640 benchmark. In addition, profit-taking sellingincreased in other blue chips, which also contributed to the market'sdowntrend.
Yet the green came back to the market on on July 17,along with recovery of blue chips, such as Bao Viet Holdings (BVH),Vietinbank (CTG) and Masan Group (MSN), but their slowed growth failedto lift the entire market. The VN30, which tracks the top 30 shares bymarket value and liquidity on the exchange, increased just 0.36 percentin the week to record more than 651 points.
Meanwhile, with threeout of five declining sessions, the HNX-Index on the Hanoi StockExchange gave up 1.33 percent over the week, ending at 87.07 points onJuly 17.
Net selling by the foreign sectors in the last two sessions also raised cautions among investors.
Meanwhile,foreigners continued to conclude the week as net buyers, responsiblefor a net buy value of nearly 62 billion VND (2.8 million USD). However,their purchases focused on Hanoi's market, with an increase of nearly83 billion VND (3.8 million USD) worth of shares. Additionally, theywere net sellers with a value of nearly 21 billion VND (963,300 USD) inHCM City.
According to analysts at Investment Vietnam SecuritiesCo, it was expected to see corrections after the VN-Index soared from600 points to the five-year peak of 640 points in a short time.
"Itis possible to have other declining sessions this week that would pushshare prices down to more reasonable levels," they wrote in a note.
Liquidity also dropped substantially in the two markets last week.
Thedaily trading volume in HCM City's market dropped 21 percent from theprevious week, averaging over 153 million shares and worth almost 2.5trillion VND (114.7 million USD) per session.
A similar figure onthe Hanoi exchange was 58.5 million shares worth 721.3 billion VND(33.1 million USD) per day, down over 7 percent in volume compared withthe previous week.
"Decline in liquidity could stem from thewaiting attitude of investors to anticipate the upcoming release ofbusiness results in the second quarter. Investors seem to expectoptimistic news from the construction and real estate sectors, withspeculation about their positive sales," analysts of the financialwebsite said.
According to analysts from Bao Viet Securities Co,in the short term, information about second-quarter and first-halfearning reports, as well as prospects for businesses in the last sixmonths, will support the market.
However, analysts predictmid-cap shares, such as securities, real estate and exporting companies,will have better opportunities in the near future, as those shares haveyet to rise as strongly as blue chips.-VNA
On the HCMStock Exchange, downward corrections appeared after the benchmarkVN-Index hit its five-year peak of 640 points in July 14 trading,narrowing the weekly gain to just 0.22 percent to close at 628.63 pointson July 17.
Further, leading stocks, such as banks and insurers,lost steam in mid-week trading that resulted in the Index failing torise above the 640 benchmark. In addition, profit-taking sellingincreased in other blue chips, which also contributed to the market'sdowntrend.
Yet the green came back to the market on on July 17,along with recovery of blue chips, such as Bao Viet Holdings (BVH),Vietinbank (CTG) and Masan Group (MSN), but their slowed growth failedto lift the entire market. The VN30, which tracks the top 30 shares bymarket value and liquidity on the exchange, increased just 0.36 percentin the week to record more than 651 points.
Meanwhile, with threeout of five declining sessions, the HNX-Index on the Hanoi StockExchange gave up 1.33 percent over the week, ending at 87.07 points onJuly 17.
Net selling by the foreign sectors in the last two sessions also raised cautions among investors.
Meanwhile,foreigners continued to conclude the week as net buyers, responsiblefor a net buy value of nearly 62 billion VND (2.8 million USD). However,their purchases focused on Hanoi's market, with an increase of nearly83 billion VND (3.8 million USD) worth of shares. Additionally, theywere net sellers with a value of nearly 21 billion VND (963,300 USD) inHCM City.
According to analysts at Investment Vietnam SecuritiesCo, it was expected to see corrections after the VN-Index soared from600 points to the five-year peak of 640 points in a short time.
"Itis possible to have other declining sessions this week that would pushshare prices down to more reasonable levels," they wrote in a note.
Liquidity also dropped substantially in the two markets last week.
Thedaily trading volume in HCM City's market dropped 21 percent from theprevious week, averaging over 153 million shares and worth almost 2.5trillion VND (114.7 million USD) per session.
A similar figure onthe Hanoi exchange was 58.5 million shares worth 721.3 billion VND(33.1 million USD) per day, down over 7 percent in volume compared withthe previous week.
"Decline in liquidity could stem from thewaiting attitude of investors to anticipate the upcoming release ofbusiness results in the second quarter. Investors seem to expectoptimistic news from the construction and real estate sectors, withspeculation about their positive sales," analysts of the financialwebsite said.
According to analysts from Bao Viet Securities Co,in the short term, information about second-quarter and first-halfearning reports, as well as prospects for businesses in the last sixmonths, will support the market.
However, analysts predictmid-cap shares, such as securities, real estate and exporting companies,will have better opportunities in the near future, as those shares haveyet to rise as strongly as blue chips.-VNA
