The VN-Index managed to hold its head above water on Monday, closing largely unchanged at 505.67 points, as the announcement of dividends or bonus shares by such major firms as FPT and Vinamilk helped the market withstand the drooping interest of investors.
Market value fell by nearly half from Friday's pace, to just VND1.4 trillion (US$73.7 million), on a volume of 37.2 million shares.
Analysts of Dai Viet Securities Company said that banking and securities stocks put the brakes on any market advance yesterday, fuelling new concerns about the flow of capital into the stock market.
On the Ha Noi Stock Exchange, the HNX-Index also closed flat at 163.75 points. Volume reached 26.1 million shares, worth a combined VND867.9 billion ($45.6 million).
Viet Nam-German Pipe (VGS) suprised as the most-active share on the northern bourse, generating a volume of nearly 2.8 million shares after the company announced 2009 business results showing earnings of over VND1.1 trillion and a profit of VND48.3 billion ($2.5 million).
Bao Viet Securities Company analyst Nguyen Duc Thi said that investors were becoming overly sensitive to negative news while ignoring the positive.
Technical analysis showed that day traders were selling off shares to realise profit and restructure their portfolios, leading to a drop in market demand, Thi said. As a result, the market this week could swing at around 490 to 500 points, he said, suggesting investors step up buys if the VN-Index were to dip below the 500-mark.
Foreign investors remained net buyers on both exchanges yesterday, but by a slender net of just 48,000 shares, worth a combined VND26.2 billion ($1.4 million).