The HCM City Stock Exchange continued to retreat on Friday from the rally at the beginning of the week, with the VN-Index slumping another 2.33 per cent to close at 520.9 points.
The value of the day’s trades climbed by 13.2 percent to VND3.86 trillion (US$206.4 million), on a volume of 83.16 million shares. Sacombank (STB) continued as most-active share, with 5.3 million traded.
Despite the second day of declines, FPT Securities Company analysts, in their daily report, saw it as a technically corrective session and continued to expect a rebound next week in a light of increasing capital inflows to the stock market and growing demand.
On the Ha Noi Stock Exchange, meanwhile, the HNX-Index managed a gain of just over 1 per cent to end Friday’s session at 179.76. Market value on the northern bourse totalled VND1.69 trillion ($90.4 million), up 27.1 percent from Thursday’s session, on a volume of 43.83 million shares.
PetroVietnam Construction (PVX) was the most active share, responsible for 5.4 million trades.
The Ha Noi market yesterday welcomed a listing of over 2.7 million shares by construction company Hong Ha Long An Company (HHL). HHL closed up its first trading day at VND25,300 ($1.40) per share, on a volume of 108,000 shares.
With the State Bank of Viet Nam pumping VND15 trillion ($789.47 million) of liquidity into the banking system to cool down interbank rates, investors were showing increasing confidence that credit conditions would soon become looser
"There are still some constraints on bank lending, at least through the Tet [lunar new year] holiday," said Bao Viet Securities Company analyst Nguyen Duc Thi. Investment capital was becoming unblocked, a shift that would sustain the market in the medium term, he predicted.
However, the market’s failure to reach 540 for a third day raised a warning flag, commented Au Viet Securities Company analysts, who discouraged investors from abusing financial leverage.
Foreign investors on Friday were net buyers by volume of 768,960 shares on the southern bourse, but net sellers by value of VND31.7 billion ($1.7 million). They were net buyers on the northern market, picking up a net of 614,400 shares, worth VND21.3 billion ($1.1 million).