Favourable economic news excited investors last week, helping lift the VN-Index to 542.37 points, a cumulative gain of 2.47 per cent during the four trading sessions prior to Friday's Liberation Day holiday.
Average daily trading values on the HCM City Stock Exchange grew by 0.79 per cent over those during the previous week, to VND2.4 trillion (US$126.3 million), on an average volume of nearly 62 million shares.
Sacombank (STB) was the most-active share on the week, with 8.3 million traded, followed closely by Saigon Securities Inc, with a volume of 8.1 million.
FPT Securities Company analyst Le Quang Vinh attributed the market rally to lower-than-expected inflation figures for April, as well as positive quarterly earnings.
The prime rate was also held unchanged for another month at 8 per cent, the State Bank of Viet Nam announced last week, and commercial banks have decided to lower lending interest rates by 0.5-1 per cent this month.
On the Ha Noi Stock Exchange last week, heavy trading in penny stocks helped lift the HNX-Index to 179.69 points, a gain of 0.76 per cent on the week. Activity was bit off the previous week's pace on the northern bourse, however, with average daily volume reaching just 44.5 million shares, for an average daily value of VND1.5 trillion ($78.9 million) per day.
PetroVietnam Construction (PVX) was the most-active share on the Ha Noi exchange, with 20.5 million shares changing hands. Kim Long Securities (KLS) also outpaced any share on the Ha Noi bourse, with a cumulative volume last week of 14.7 million shares.
Capital was being directed toward mid- and small-caps as investors felt the stagnation of major companies in carrying out needed corporate restructuring and developing orientations, commented SME Securities Company senior analyst Le Van Thanh Long.
And, while the values of blue-chip shares were largely stagnant, penny stocks were drawing investors with promises of significant instant profits, Long said.
"However," he added, "at present price levels, blue chips could advance in the shor term."
Vinh also expected capital to move toward blue chips this week as investors seemed to be more positive about market prospects in the coming sessions.
"The VN-Index will range between 526 and 530 points this week," he predicted.
Tan Viet Securities Company Deputy Director Hoang Xuan Quyen recommended investors focus on stocks that might benefit from economic improvements, such as rubber, seafood or raw materials.
Inflation at a four-month low in April hinted that looser monetary policies might be on the way, he said.
Regulations requiring companies to raise charter capital this year could lead to a market dilution, he added. This in turn would argue in favour of looser policies in order to assist market development. If so, the markets could brighten considerably at the end of this quarter.
Foreigners continued as net buyers on both stock exchanges last week, picking up a net of 14 million shares. Pha Lai Thermal Power (PPC) and Song Da Urban and Industrial Zone Investment & Development (SJS) in HCM City, and PetroVietnam Insurance (PVI) and VN Direct Securities Company (VND) in Ha Noi were particularly attractive to foreign investors.
Both stock exchanges will remain dark today but reopen for trading tomorrow.