Investors at ACB Securities Co. Ltd’s office in Hanoi (Photo: VNA) Hanoi (VNS/VNA) - Stock analysts have predicted the market will likely extendgains this week but divergence will continue in the context of third-quarterearning reports.
The VN-Indexon the Ho Chi Minh Stock Exchange rose 1.63 percent in all five tradingsessions last week, closing October 13 at 820.95 points. The benchmark indexhas expanded over 2 percent since the beginning of this month.
On the HanoiStock Exchange, the HNX-Index increased 1.05 percent last week, ending October13 at 109.11 points. The northern market index edged up 1.3 percent since earlyOctober.
Liquidity alsoimproved with an average of 188.7 million shares worth a combined 3.8 trillionVND (167.4 million USD) being traded per session on the two exchanges. Thesefigures represented growth of 10.2 percent in trading volume and 22.6 percentin trading value compared to the previous session.
However, thecash flow only focused on certain stocks, creating a strong division.
Last week’srally was mainly driven by large-cap stocks, particularly on the VN30 basket,which tracks the top 30 largest shares by market value and liquidity on the HCMStock Exchange.
Mobile phoneretailer Mobile World Group (MWG) gained 6.3 percent for the week, followed byreal estate giant Vingroup (VIC), up 6.5 percent; IT group FPT (FPT), up 5 percent,brewer Sabeco (SAB), up 4.6 percent; PV Gas (GAS), private quity firm MasanGroup (MSN) and budget airline Vietjet (VJC) each growing by over 2 percent.
Among banks,VPBank was the biggest gainer with a weekly gain of 7.9 percent; BIDV (BID)rallied by over 1 percent, while others such as Vietcombank (VCB) and MilitaryBank (MBB) increased by less than 1 percent.
Nguyen VanHanh, a broker at Sai Gon-Hanoi Securities JSC, said large caps will likelycontinue to grow and be a major market supporter this week because leadingcompanies are expected to report good earnings.
Hanh saidthe financial stocks, particularly banks and securities companies, will havemore growth opportunities as these sectors are forecast to achieve highprofits. Besides banks which have continuously gained value in recent weeks,securities shares started to rise last week.
Shares of MBSecurities (MBS) climbed 8.3 percent; Viet Capital Securities (VCI) rose 7 percent;HCM Securities Corp (HCM) grew 4.8 percent; and Sai Gon-Hanoi Securities (SHS)was up 1.6 percent.
According toNguyen Duy Dinh, a stock analyst at MB Securities Co, with the strong growth ofthe stock market since the beginning of this year, securities companies havebright prospect. Revenues from all core businesses, from brokerage services toself investment and margin lending, all increased.
Apart fromsecurities companies, realty stocks also have rising potential thanks tofavorable development of the real estate market this year.
According toBIDV Securities Co’s report, about 26 listed companies on the two nationalstock exchanges have released their third-quarter earnings with total netprofits of 937 billion VND, a temporary decline of 15 percent from the previousquarter.
However,some analysts reckon investors will start to sell stocks when their companiesdisclose earnings results to book short profits.
Despitepossible divergence, analysts are optimistic about the market trend this weekwith the Sai Gon-Hanoi Securities forecasting the VN-Index may touch 830 points.
On thenegative side, foreign investors remained net sellers on the two exchanges lastweek with total trading volume of over 17.5 million shares, equivalent to combinednet sell value of nearly 551 billion VND.-VNA
VNA
