HA NOI (VNS)— The market fell sharply again last week, primarily due to strong selling pressure in blue-chips, including property developers Vingroup (VIC), Hoang Anh Gia Lai (HAG), Vietinbank (CTG), Vietcombank (VCB), steelmaker Hoa Phat (HPG) and PetroVietnam Gas (GAS).
On the HCM City Stock Exchange, the VN-Index lost 1.95 per cent over the previous Friday’s close at 493.93 points. Both average trading value and volume climbed 11.3 per cent over the previous week, reaching VND1.16 trillion (US$54.4 million) with 49.3 million shares traded. Despite the extension in trading hours on the HCM City Stock Exchange, liquidity did not improve.
On the Ha Noi Stock Exchange, the HNX-Index slumped 2.9 per cent to 61.33 points. Trading was sluggish, averaging just VND149 billion ($6.9 million) with 19.7 million shares traded. Value declined 5.7 per cent, while volume fell nearly 2 per cent.
The market showed no signs supporting further growth. On the other hand, the consumer price index reached a five-month high in July, creating an uptrend.
Goods related to transportation services showed the fastest increase in prices, climbing 1.34 percent. This is the only group in the CPI calculating basket that rose more than 1 per cent. Petrol price went up to a record VND24,570 ($1.15) per litre.
In addition, foreign investors increased selling, especially blue chips, though foreign investors were net sellers for the entire week by a combined margin of VND188.7 billion on both bourses ($8.8 million).
A BIDV Securities analysts said that the VN-Index showed signs of a downtrend. There would be the support levels of 492, 487 and 466 points. “However, the first two levels are relatively weak, and the index may break them and reach 466 points.”
Nguyen Mai Phuong, a Maritime Bank Securities Co analyst, claimed that the market would rally in this week’s trading after HCM City shares rebounded slightly on Friday. “Sell-offs did not occur, and the VN-Index could reach 505 points,” she said. She advised today for investors to buy shares of insurer Bao Viet (BVH), Pha Lai Thermalpower (PPC), Refrigeration Electric Engineering (REE) and HAG.
July figures for the Purchasing Managers’ Index (PMI) will be announced this week. The PMI was low (under the average 50 points) during the last two months. “Therefore, this month’s PMI is expected to reflect more clearly the production scenario and growth potential of the economy,” said a BIDV Securities Co analysts. — VNS
Đăng ký: VietNam News