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-Indexsuffering the first loss after four gaining weeks.
The current condition isexpected to continue in the first two weeks of October.
The benchmark VN-Index onthe HCM Stock Exchange closed 0.05 percent below on September 29 to finish lastweek at 804.42 points. It posted a weekly loss of 0.3 percent, but still posteda growth of 2.7 percent in September.
The HNX-Index on the HanoiStock 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 thebeginning of the month with a total growth of 3.6 percent.
According to securitiesanalysts, the current market trading conditions are quite poor, as investorsare unwilling to make new purchases and listed companies are running out ofsupportive information, until their quarterly earnings reports are published.
According to Duong VanChung, head of brokerage division at MB Securities Company, there are someproblems that could make the market trade cautiously in the first two weeks ofOctober.
Firstly, the margin lendingbalance in Vietnam’s stock market is at a high level, and some of the brokeragecompanies have reached their margin lending limits, he said. “Therefore, theflow of money into the market will be kept under control in the short term.”
Secondly, the share pricesof the large-cap companies have made incredible gains recently, and the growthof those shares has been priced in by the investors’ expectations for thosecompanies in the third-quarter earnings reports, Chung said.
“Those shares will stallfrom making further progress in two weeks at least, until the official data ontheir corporate earnings become public.”
“If their earnings reports,which may come in the third week of October onwards, show higher results thanthe previous expectations, then their shares will go up again.”
According to Chung, thesectors that should release higher-than-expected quarter earnings reports arereal estate, banking and brokerage.
Nguyen Ngoc Lan, seniorspecialist at Agribank Securities Company, told tinnhanhchungkhoan.vn at around-table discussion that the stock market was weakening with modest marketdemand, making the trading liquidity unstable at the moment.
An average of 208.3 millionshares were traded in each session of the last trading week, worth nearly 3.8trillion VND (168.4 million USD).
The figures were down 6.8 percentin trading volume and 5.7 percent in trading value from the previous tradingweek.
“The VN Index will movemarginally at the level of 800 points and test the current market supply/demandconditions before signalling a clearer trend,” Lan said.
Another factor that couldkeep the stock market vulnerable in the coming week is foreign investorsbecoming net sellers in September after eight consecutive months of net buying.
Foreign investors last weekposted a net sale value of more than 300 billion VND, raising their net salevalue in September to 467.6 billion VND. Foreign investment in the stock markethas reached a total of 14.5 trillion VND after nine months.-VNA
The current condition isexpected to continue in the first two weeks of October.
The benchmark VN-Index onthe HCM Stock Exchange closed 0.05 percent below on September 29 to finish lastweek at 804.42 points. It posted a weekly loss of 0.3 percent, but still posteda growth of 2.7 percent in September.
The HNX-Index on the HanoiStock 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 thebeginning of the month with a total growth of 3.6 percent.
According to securitiesanalysts, the current market trading conditions are quite poor, as investorsare unwilling to make new purchases and listed companies are running out ofsupportive information, until their quarterly earnings reports are published.
According to Duong VanChung, head of brokerage division at MB Securities Company, there are someproblems that could make the market trade cautiously in the first two weeks ofOctober.
Firstly, the margin lendingbalance in Vietnam’s stock market is at a high level, and some of the brokeragecompanies have reached their margin lending limits, he said. “Therefore, theflow of money into the market will be kept under control in the short term.”
Secondly, the share pricesof the large-cap companies have made incredible gains recently, and the growthof those shares has been priced in by the investors’ expectations for thosecompanies in the third-quarter earnings reports, Chung said.
“Those shares will stallfrom making further progress in two weeks at least, until the official data ontheir corporate earnings become public.”
“If their earnings reports,which may come in the third week of October onwards, show higher results thanthe previous expectations, then their shares will go up again.”
According to Chung, thesectors that should release higher-than-expected quarter earnings reports arereal estate, banking and brokerage.
Nguyen Ngoc Lan, seniorspecialist at Agribank Securities Company, told tinnhanhchungkhoan.vn at around-table discussion that the stock market was weakening with modest marketdemand, making the trading liquidity unstable at the moment.
An average of 208.3 millionshares were traded in each session of the last trading week, worth nearly 3.8trillion VND (168.4 million USD).
The figures were down 6.8 percentin trading volume and 5.7 percent in trading value from the previous tradingweek.
“The VN Index will movemarginally at the level of 800 points and test the current market supply/demandconditions before signalling a clearer trend,” Lan said.
Another factor that couldkeep the stock market vulnerable in the coming week is foreign investorsbecoming net sellers in September after eight consecutive months of net buying.
Foreign investors last weekposted a net sale value of more than 300 billion VND, raising their net salevalue in September to 467.6 billion VND. Foreign investment in the stock markethas reached a total of 14.5 trillion VND after nine months.-VNA
VNA
