The VN-Index closed largely unchanged at 511.18 on Friday, saved from a loss by a slight rebound in blue chips during the final minutes of the session on the HCM City Stock Exchange.
Foreign investors continued focusing their buys on such major shares as Phu My Fertilisers (DPM), Kinh Bac City Development (KBC), Vietinbank (CTG) and Hoa Sen Group (HSG), helping lift the market.
The beneficence of foreign investors did not extend to insurer Bao Viet Holdings (BVH), however, which watched its shares plunge to their floor price of VND41,800 ($2.20).
Overall trading volume on the HCM City bourse yesterday rose by 18 per cent over Thursday's session, reaching 63 million shares worth a combined VND1.9 trillion (US$101.6 million). Losers outnumbered gainers by 105-84, while a penny stock – PetroVietnam Transportation Company (PVT) – claimed the spot as the most-active share with about 2.3 million traded.
On the Ha Noi Stock Exchange yesterday, the HNX-Index rose by a more decisive 0.68 per cent to close out the week at 163.35. Trading value, however, fell nearly 8 per cent to just VND1.37 trillion ($72.5 million) on a volume of around 44 million shares.
Advancers outnumbered decliners by 144-110, with 41 codes – all penny stocks – closing at their ceiling prices. However, PetroViet-nam Construction (PVX), again the most-active share, lost 2.46 per cent of its value on the day.
The Head of MHB Securities Co's brokerage department, Hoang Thach Lan, said a sustained rally on the Vietnamese stock market was unlikely under current circumstances.
He noted that domestic investors were still dabbling speculatively in penny stocks while foreign investors focused on large-cap shares.
"Though most small caps are priced reasonably, investors should not use financial leverage to invest in the shares that have risen to their top prices in three consecutive sessions," Lan warned.
Foreign investors were net sellers on both national stock exchanges yesterday, responsible for a net sale of 7.5 million shares worth a combined VND85 billion ($4.5 million).
The State Securities Commission yesterday held a meeting among securities companies, fund management companies and custodial banks to discuss draft regulations on such new products such as open-ended funds and margin trading.