Market seen rising on early Q3 business data

Investors monitor stock market fluctuations. Daily trading volume last week rose by nearly 13 per cent over the previous week to reach 81 million shares worth VND1.15 trillion ($54.5 million).- Photo vietstock.vn

According to analysts at the financial website vietstock.vn, cashflow will tend to focus on stocks that will likely post positive earnings results, such as those of oil and gas, securities, real estate and construction groups, as well as ports and logistics companies.

Some of these groups, particularly securities, real estate and construction companies, were the main support of both markets last week, which saw investors pouring money into their stocks in hopes of taking advantage of early information on their business results.

"Investors will pay more attention to blue chips this week as these stocks are usually the earliest companies to report earnings," said Nguyen Duc Cuong, a vietstock.vn analyst.

The green light returned to both stock exchanges last week after two consecutive weeks of decline. Liquidity also improved because of strong speculative cashflow.

At the HCM Stock Exchange, the VN-Index gained a cumulative 1.1 per cent during the week, closing Friday at 611.55 points, while the VN30, which tracks the performance of the top 30 shares by market value and liquidity, also rose by 0.72 per cent to end at 659.25 points.

Profit-taking activity was still strong on several heavyweight stocks like Vinamilk, PV Gas and PetroVietnam Drilling and Wells Service Corporation, but the growth of other blue chips helped sustain the market.

Market volume increased by more than 26 per cent over that of the previous week, averaging 167 million shares worth nearly VND3.1 trillion (US$147 million) per session.

At the Ha Noi Stock Exchange, the HNX-Index added two per cent to finish the week at 90.32 points. The daily trading volume also rose by nearly 13 per cent over that of the previous week to reach 81 million shares worth VND1.15 trillion ($54.5 million).

In contrast to domestic investors, the foreign sector sold out and concluded as net sellers last week. They were still net buyers on the Ha Noi Stock Exchange, picking up shares worth VND33 billion ($1.6 million). But they were responsible for a net sales value of VND338 billion ($16 million) on the HCM City stock market.

Foreign investors focused their purchases on influential stocks like VinGroup, as well as PV Gas, Vietcombank, Sai Gon Securities Inc. and Hoa Sen Group.

According to analysts, the current uptrend is unstable, as shown by the large fluctuation range in previous sessions. However, since liquidity remained high and gainers still outnumbered losers, the market is expected to continue attracting more speculative money.