Vietnamese shares were sluggish in the past week with the benchmark VN-Index suffering the first loss after four gaining weeks. (Source: VNA) Hanoi (VNS/VNA) - Vietnamese shares were sluggish in the past week with the benchmark VN-Index suffering the first loss after four gaining weeks.
The current condition is expected to continue in the first two weeks of October.
The benchmark VN-Index on the HCM Stock Exchange closed 0.05 percent below on September 29 to finish last week at 804.42 points. It posted a weekly loss of 0.3 percent, but still posted a growth of 2.7 percent in September.
The HNX-Index on the Hanoi Stock Exchange gained 0.21 percent on September 29 to close at 107.66 points, increasing 1.1 percent on a weekly basis and enhancing its uptrend since the beginning of the month with a total growth of 3.6 percent.
According to securities analysts, the current market trading conditions are quite poor, as investors are unwilling to make new purchases and listed companies are running out of supportive information, until their quarterly earnings reports are published.
According to Duong Van Chung, head of brokerage division at MB Securities Company, there are some problems that could make the market trade cautiously in the first two weeks of October.
Firstly, the margin lending balance in Vietnam’s stock market is at a high level, and some of the brokerage companies have reached their margin lending limits, he said. “Therefore, the flow of money into the market will be kept under control in the short term.”
Secondly, the share prices of the large-cap companies have made incredible gains recently, and the growth of those shares has been priced in by the investors’ expectations for those companies in the third-quarter earnings reports, Chung said.
“Those shares will stall from making further progress in two weeks at least, until the official data on their corporate earnings become public.”
“If their earnings reports, which may come in the third week of October onwards, show higher results than the previous expectations, then their shares will go up again.”
According to Chung, the sectors that should release higher-than-expected quarter earnings reports are real estate, banking and brokerage.
Nguyen Ngoc Lan, senior specialist at Agribank Securities Company, told tinnhanhchungkhoan.vn at a round-table discussion that the stock market was weakening with modest market demand, making the trading liquidity unstable at the moment.
An average of 208.3 million shares were traded in each session of the last trading week, worth nearly 3.8 trillion VND (168.4 million USD).
The figures were down 6.8 percent in trading volume and 5.7 percent in trading value from the previous trading week.
“The VN Index will move marginally at the level of 800 points and test the current market supply/demand conditions before signalling a clearer trend,” Lan said.
Another factor that could keep the stock market vulnerable in the coming week is foreign investors becoming net sellers in September after eight consecutive months of net buying.
Foreign investors last week posted a net sale value of more than 300 billion VND, raising their net sale value in September to 467.6 billion VND. Foreign investment in the stock market has reached a total of 14.5 trillion VND after nine months.-VNA
The current condition is expected to continue in the first two weeks of October.
The benchmark VN-Index on the HCM Stock Exchange closed 0.05 percent below on September 29 to finish last week at 804.42 points. It posted a weekly loss of 0.3 percent, but still posted a growth of 2.7 percent in September.
The HNX-Index on the Hanoi Stock Exchange gained 0.21 percent on September 29 to close at 107.66 points, increasing 1.1 percent on a weekly basis and enhancing its uptrend since the beginning of the month with a total growth of 3.6 percent.
According to securities analysts, the current market trading conditions are quite poor, as investors are unwilling to make new purchases and listed companies are running out of supportive information, until their quarterly earnings reports are published.
According to Duong Van Chung, head of brokerage division at MB Securities Company, there are some problems that could make the market trade cautiously in the first two weeks of October.
Firstly, the margin lending balance in Vietnam’s stock market is at a high level, and some of the brokerage companies have reached their margin lending limits, he said. “Therefore, the flow of money into the market will be kept under control in the short term.”
Secondly, the share prices of the large-cap companies have made incredible gains recently, and the growth of those shares has been priced in by the investors’ expectations for those companies in the third-quarter earnings reports, Chung said.
“Those shares will stall from making further progress in two weeks at least, until the official data on their corporate earnings become public.”
“If their earnings reports, which may come in the third week of October onwards, show higher results than the previous expectations, then their shares will go up again.”
According to Chung, the sectors that should release higher-than-expected quarter earnings reports are real estate, banking and brokerage.
Nguyen Ngoc Lan, senior specialist at Agribank Securities Company, told tinnhanhchungkhoan.vn at a round-table discussion that the stock market was weakening with modest market demand, making the trading liquidity unstable at the moment.
An average of 208.3 million shares were traded in each session of the last trading week, worth nearly 3.8 trillion VND (168.4 million USD).
The figures were down 6.8 percent in trading volume and 5.7 percent in trading value from the previous trading week.
“The VN Index will move marginally at the level of 800 points and test the current market supply/demand conditions before signalling a clearer trend,” Lan said.
Another factor that could keep the stock market vulnerable in the coming week is foreign investors becoming net sellers in September after eight consecutive months of net buying.
Foreign investors last week posted a net sale value of more than 300 billion VND, raising their net sale value in September to 467.6 billion VND. Foreign investment in the stock market has reached a total of 14.5 trillion VND after nine months.-VNA
VNA
