Vietnamese shares went through a rough trading week with rising investor caution. However, the market is expected to move up this week when listed companies announce third-quarter earnings (Photo: anninhthudo.vn) Hanoi (VNS/VNA) - Vietnamese shares went through a rough trading week withrising investor caution. However, the market is expected to move up thisweek when listed companies announce third-quarter earnings.
The benchmark VN-Index onthe Ho Chi Minh Stock Exchange gained 0.32 percent October 6 to end the week at807.80 points, recording a weekly increase of 0.4 percent.
The HNX-Index on the HanoiStock Exchange was up 0.95 percent to end last week at 107.98 points. It rosemarginally by 0.3 percent from the previous week’s closing.
According to analysts andbrokerage firms, October 6’s gains on both exchanges were attributed to risinginvestor confidence in stocks that were expected to release good earningsreports.
BIDV Securities Co (BSC)wrote in its weekly report that both indices remained positive on the back ofblue chips, and the benchmark VN-Index could go up to test the 810-point levelthis week, but the growth is uncertain due to declining market liquidity.
An average of 171 millionshares were traded in each session last week, worth 3.06 trillion VND (136.2million USD), down 17.8 percent in volume and 19 percent in value compared withthe previous week.
Expectations for thethird-quarter corporate earnings reports will be the major driving factor thisweek, BSC said. PetroVietnam Southern Gas Co (HNX: PGS), flagship carrierVietnam Airlines (HOSE: HVN) and Viet Dragon Securities Co (HOSE: VDS) havealready reported positive Q3 results.
“Some unofficial sourceshave reported that banks performed quite well in the past quarter, and thiscould boost the banking sector in the short term,” BSC said.
Bank stocks will have achance to lead the markets up, according to Hoang Thach Lan, head of the individualinvestor division at Viet Dragon Securities Co, and Dang Thanh The, a senioranalyst at Maritime Securities Inc.
The told news site tinnhanhchungkhoan.vn thatthe Government had tried to achieve a more lending-based economy to reduce itsdependence on the oil and gas sector, as the energy sector had been performingbadly in the recent years.
According to the GeneralStatistic Office, Vietnam’s gross domestic product (GDP) growth rate in thethird quarter was 7.46 percent, the highest quarterly increase since 2011.
“The GDP growth hike hasboosted expectations for positive policy impact on the economy,” The said. “Asthe intermediary that finances the whole economy, the banking industry isclearly the beneficiary.”
Lan said that investorsshould pay more attention to the State-invested banks such as Vietcombank(HOSE: VCB), MB Bank (HOSE: MBB), Bank for Investment and Development of Vietnam(HOSE: BID) and Vietinbank (HOSE: CTG), as they are well supported by theGovernment to clear their bad debts and improve their business efficiency.
Among those four banks, VCBstill has room to grow, as the stock has not increased too much since thebeginning of the year compared with the three other bank stocks, according tothe two analysts.
Statistics cited on cafef.vn showedthat VCB had risen 12.5 percent since December 31, 2016, while BID, CTG and MBBhave gained 45 percent, 37 percent and 80 percent, respectively, during thesame period.
“VCB is expected toincrease after remaining modest for such a long time,” Lan said.-VNA
VNA
