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|Oil transmission pipes at the PV Oil Corporation. Last week, the oil and gas sector posted highest gains of 4.4 per cent. - VNA/VNS Photo Huy Hung|
The VN-Index on the Ho Chi Minh Stock exchange (HoSE) lost 0.50 per cent to end the Friday session at 850.74 points.
The index had gained 1.1 per cent last week.
An average of 278.3 million shares were traded on the southern exchange during each session last week, worth VND4.6 trillion (US$199 million).
“The VN-Index is forecast to face correction pressure during early trading sessions next week. The index will receive support from 840 points,” said Tran Xuan Bach, a stock analyst at Bao Viet Securities Co.
“Overall, we maintain our expectation that the index will soon break the upward resistance of 858-860 points and head toward the strong resistance of 878-883 points in the short term,” he said.
“The market may fluctuate considerably next week with the maturity of August futures contracts. Besides, the review sessions of funds bench-marking MSCI Frontier Market Index will take place during the last weeks of August and possibly trigger wild fluctuations for blue-chip indices of their baskets,” Bach said.
According to Viet Dragon Securities Company, during last Friday’s trading session, indices rose at the beginning but could not keep their pace due to large profit-taking pressure.
This showed that market could still correct and had yet to reach the balance. Investors should not rush to participate in the market to preserve accounts, the company said.
Ngo Quoc Hung, senior analyst at MB Securities Co's market strategy department, said that from now until the end of this year, the stock market was still heavily dependent on the unpredictable developments of external elements such as the COVID-19 pandemic, US-China trade tensions and the US presidential election in November.
“With so many uncertain variables, it is too early to forecast a long-term recovery period for the market. Instead of making predictions, investors should prepare for different scenarios to respond in accordance with market developments,” he said.
Foreign traders continued their selling. On the HoSE, foreign investors net sold VND208 billion on Friday, up 61 per cent compared to the net selling value in the previous session. They have been net sellers for six consecutive sessions on HoSE with a total value of up to VND832 billion.
According to BIDV Securities Company, local investors should keep a close watch on the net selling activities of foreign investors.
If this net selling trend continues with high volume while the global market experiences negative movements, the market will face significant pressure in the short run, it said.
Last week, the oil and gas sector posted highest gains of 4.4 per cent, with notable gainers of PetroVietnam Technical Services Corporation (PVS), PetroVietnam Oil Corporation (PV Oil), Binh Son Refining and Petrochemical Company Limited (BSR), PetroVietnam Drilling and Well Services Co (PVD) and Viet Nam National Petroleum Group (PLX).
Consumer service sector also outperformed with an increase of 3.2 per cent. Banking sector rose by 2.4 per cent.
On the Ha Noi Stock Exchange, the HNX-Index lost 0.54 per cent to end Friday's session at 116.23 points.
The northern market index had gained 3.06 per cent last week.
An average of 76.5 million shares were traded on the northern exchange during each session last week, worth VND1.2 trillion.