Investors at Vietcombank Securities Company (Source: VNA) The benchmark VN-Index on the HCM Stock Exchange inched down 0.09 percentto close at 777.60 points on July 14. The HNX-Index on the Hanoi Stock Exchangedropped 0.33 percent to end at 100.43 points.
July 14’s declines ended a three-day rally on both local bourses,with the VN-Index advancing a total 1.5 percent and the HNX-Index going up 0.4 percent.
The two local indices finished the trading week with a mixeddirection. The VN-Index posted a weekly gain of 0.2 percent while the HNX-Indexfell 1.1 percent.
Daily average trading liquidity declined from the previous week by25.6 percent in volume and 10.3 percent in value to 230.5 million shares and 2.26trillion VND (189.5 million USD).
According to brokerage companies and analysts, both local indiceswill remain firm at the current score range of between 770 and 780 points asinvestors are cautious over the market’s negative trading conditions.
Bao Viet Securities Co (BVSC) said in its weekly report that July14’s decline had made market trading conditions unpredictable.
As the benchmark VN-Index recorded a slight weekly increase andthe HNX-Index retreated from the previous week’s closing level, investorsclearly have reasons to wait for more positive signals.
Though some key large-cap stocks rebounded and pulled the twolocal markets up, investor sentiment was still weak, especially after the twoindices continuously hit their fresh highs in recent weeks.
Shares of leading firms such as PetroVietnam Gas (GAS), Petrolimex(PLX), dairy producer Vinamilk (VNM), insurance-finance group Bao Viet Holdings(BVH), property developer Vingroup (VIC) and steelmaker Hoa Phat Group (HPG)advanced between 0.5 percent and 4.6 percent.
On the opposite side, trading of bank and brokerage sharesremained negative after strong increases in the previous period.
Shares of the three largest banks on the stock market, Vietcombank(VCB), Vietinbank (CTG) and BIDV (BID), finished last week down between 1.2 percentand 4.4 percent.
Shares of securities firms also saw their prices fall. SacombankSecurities (SBS) slumped 7.7 percent, Bao Viet Securities (BVS) and VietinbankSecurities (CTS) edged down 0.6 percent each.
Mixed performance of local shares and falling trading liquidity provedthat both sellers and buyers were hesitating to trigger their purchasing power,according to Chau Thien Truc Quynh, an analyst at Viet Capital Securities Co.
One of the major driving factors for the stock market at themoment is second-quarter and first-half earnings reports, Quynh said, addingthat would also be the reason for the mixed performance of the stock marketthis week.
MB Securities analyst Nguyen Duy Dinh said investors had priced inshares of companies, which had been forecast to release good earnings for thesecond quarter and the first half of the year, and it is now the time for themto sell stakes and earn short profits.-VNA
VNA
