Shares advance, liquidity down

HÀ NỘI – Shares closed the week in the green but there were signs of weakness along with declining liquidity.

The VN-Index on the Ho Chi Minh Stock Exchange added 0.48 per cent to close Friday at 968.88 points. It rose 0.3 per cent in the previous session.

On the Hà Nội Stock Exchange, the HNX-Index inched up just 0.09 per cent at 108.02 points after losing more than 1.7 per cent in the last three sessions.

“Although both VN-Index and HNX-Index rose, there were signs of weakness such as the fall of many VN30 stocks and waning liquidity,” said Khải Trần, a stock analyst at Viet Dragon Securities Co.

Twenty stocks in the VN30, which tracks the top 30 shares by market value and liquidity on the Ho Chi Minh Stock Exchange, fell.

Diversion continued in the banking sector. Vietcombank (VCB) and BIDV (BID) climbed by a respective 2.3 per cent and 3.7 per cent, but Vietinbank (CTG), Military Bank (MBB), VPBank (VPB) and Sacombank (STB) decreased between 0.6 per cent and 2 per cent.

Meanwhile, oil and gas stocks remained on a downtrend following falling oil prices in recent days.

Though PV Gas (GAS) advanced, Petrolimex (PLX), PetroVietnam Drilling and Well Service (PVD), PetroVietnam Technical Services and Petroleum Equipment Assembly & Metal Structure (PXS) all lost value.

A total of 184 million shares worth a total VNĐ4 trillion (US$173 million) were traded in the two markets, down 15 per cent in volume and 25 per cent in value compared to the previous session.

This level was also below the five-session average.

“Investors should not be too optimistic or use high leverage,” Trần suggested.

The VN-Index recorded a fifth consecutive rising week and is expected to hit the resistance level at 980 points next week.

“This will trigger profit-taking which adversely impacts the VN-Index,” Khiếu Trọng Huy, a stock analyst at Bảo Việt Securities Co, forecast in yesterday’s report.

Shares on the Unlisted Public Company Market (UPCoM) (where many equitised State-owned enterprises are trading) also increased with the UP-Index up 0.16 per cent at 51.47 points.

Foreign investors returned to net buyers on the two exchanges, picking up shares worth combined VNĐ67 billion, focusing on stocks on the Ho Chi Minh Stock Exchange such as sugar manufacturer Thành Thành Công-Biên Hòa JSC (SBT), steelmaker Hòa Phát Group (HPG) and lender BIDV (BID). – VNS