The selling of shares was strong last week, with growing caution as liquidity declined on both bourses. However, the market received support from foreign investors as net buyers.

Meanwhile, the benchmark indices were mixed last week, as the VN-Index on the Ho Chi Minh City Stock Exchange lost 0.2 percent to finish at 505.37 points, while the HNX-Index on the northern bourse gained 0.1 percent to reach 67.97 points.

During the first trading day of the week, the market witnessed strong selling of shares, dragging down the benchmark indices on both bourses. The selling pressure was strong on speculative stocks of construction, securities, real estate and the transport sectors, and also on blue chips.

On the Ho Chi Minh City Stock Exchange, the Vn-Index tumbled 1.2 per cent and the HNX-Index on the northern bourse lost 1.44 percent last Monday.

Selling was boosted during the remaining trading days of the week and investors became more cautions when liquidity declined to a low.

An average of 67.1 million shares changed hands on the southern bourse, with an average trading value of 1.049 trillion VND (49.9 million USD).

On the Hanoi Exchange, the average trading volume reached 43.43 million shares, with a value of 323.89 billion VND (15.4 million USD).

Both bourses closed 2013 in the black on Tuesday trading. The VN-Index, however, lost last Thursday – the opening trading day of 2014 then reversed on Friday. On the northern bourse, the HNX-The index managed to maintain the upward trend since last Tuesday, helping close the week higher.

The net buying by foreign investors helped support the market last week to ease the strong selling of shares. Foreign investors bought a net value of 256.3 billion VND (12.2 million USD), helping save the benchmark indices from larger losses when profit-taking occurred. PetroVietnam Drilling (PVD), Ho Chi Minh City Infrastructure Investment (CII) and Hoa Phat Group (HPG) attracted foreign sectors last week.

On the southern bourse, Ho Chi Minh City Securities (HCM), Viet Han Corporation (VHG) and Thanh Cong Garment and Textile (TCM) and PetroVietnam Building Corporation (PVX) on the Hanoi Exchange saw large increases last week, up 9 percent, 8.6 percent, 8 percent and 6.8 percent, respectively.

According to Ban Viet Securities, there was a strong possibility that the VN-Index could fall to the 497-500 points this week, as trading volume remained low. Investors should prioritise the holdings of blue chips.

BIDV Securities also urged investors to buy blue chips when the market saw strong declines, as forecasting market fluctuations this week would be similar to last week, unless the increase in foreign stakes was still not announced.

Stock analysts also said that short-term trading to take profits would not be easy, since the Tet holiday (Lunar New Year) was approaching, causing activities to slow.

FPT Securities said that selling pressure continues to exist this week and intensify as Tet nears, urging investors to be cautious. Further, buying stocks for short-term profit-taking should be carefully considered.