Analysts at a number of brokerages predict the Vietnamese stock market will continue to tread water in the opening days of August, as risk-averse investors continued to flee the market.

While the stock market needed to attract 30-40 trillion VND (1.6-2.1 billion USD) in new capital, several large investors were withdrawing investment.

The HCM City market alone has recently absorbed 1.3 billion new shares, while the exchange said it had approved requests by 16 companies to list a combined 496 million shares and was processing the listing documents of 11 more companies preparing to list a combined total of 813 million shares. Meanwhile, major institutional investors like Vinalines, Vinashin, and PetroVietnam unloaded shares last week.

Over the course of last week, weakened investor confidence caused shares to tumble on the HCM Stock Exchange, with the VN-Index losing a net of 1.28 percent from the previous week's close to end July 30's session at 493.91.

An average of 42 million shares changed hands per day, worth an average of 1.24 trillion VND (65.3 million USD) – a decrease of over 6 percent in both volume and value from the previous week.

Refrigeration & Electrical Engineering (REE) was the most active share on the southern bourse, with an average of 1.8 million traded per day. REE shares lost 5.1 percent of their value during the week, closing on July 30 at 18,600 VND (0.98 USD).

On the Hanoi Stock Exchange, the HNX-Index fell by an even more substantial 2.95 percent to end July 30's session at 153.33 points. The value of trades dropped by nearly 18 percent to a daily average of about 1 trillion VND (52.6 million USD), with volumes averaging 35.3 million shares per session.

Though PetroVietnam Construction (PVX) returned as the most heavily-traded share nationwide with an average of 3.7 million traded per day, it lost 3.18 percent during the week to close at 27,400 VND (1.44 USD).

Foreign investors concluded last week as net sellers on the HCM City market for a total value of over 46 billion VND (2.4 million USD). They continued as net buyers on the Ha Noi market, although only marginally, picking up a net of 5.5 billion VND (290,000 USD) worth of shares./.