Vietnamese stocks are expected to rise further on expectations of positive corporate earnings reports from the financial-banking sector and a strong inflow of foreign investment, analysts said.

Investors at Saigon Securities Inc (SSI).

The benchmark VN-Index rose 1 percent to 1,115.64 points on January 26, making a second-session increase of 2.6 percent after it had previously shut down for two days due to the technical crash late January 22.

The southern market index gained 5 percent in three sessions last week.

Trading liquidity increased on the HCM Stock Exchange (HoSE) compared to the previous week despite the market’s January 22 crash.

An average of nearly 355.6 million shares was traded on the southern bourse in each session of last week, worth 10.3 trillion VND (459.4 million USD).

The trading figures were up 13.3 percent in volume and 23.2 percent in value compared to the previous week’s numbers.

Shares also closed higher on the Hanoi Stock Exchange on January 26 with the HNX-Index edging up 0.16 percent at 126.82 points.

The northern market index notched weekly growth of 3.6 percent.

An average of more than 72.2 million shares worth 1.2 trillion VND was traded on the northern bourse.

The trading numbers fell 1.8 percent in volume but increased 11.7 percent in value on a weekly basis.

Dang Thanh The, strategic director of KB Securities Co, said the main factor helping drive up the market was the cash flow from funds and institutional investors.

As of January 19, the exchange-traded fund VNM ETF attracted total capital of 40.15 million USD while the figure for FTSE ETF was 10.18 million USD, The said.

Hoang Thach Lan, head of the individual investor division at Viet Dragon Securities Co, said foreign investment was the main driver of the VN-Index, with large cash-flows being poured into the two exchange-traded funds (ETFs) and from these ETFs into blue-chip stocks on the southern bourse, mainly large-caps in the VN30, the top 30 largest shares by market value and liquidity on the HoSE.

The expectation that Vietnam’s securities market could enter Morgan Stanley Capital International’s watchlist to be promoted to the emerging market status would also attract foreigners to increase net purchase value, he told tinnhanhchungkhoan.vn.

Foreign investors on January 26 posted a net buy value of 461 billion VND on HoSE, raising their total net investment this month to 11.8 trillion VND.

Information related to the expansion of the foreign ownership in banks and the rise of global oil prices would also contribute to push the VN-Index to exceed its all-time peak of 1,170 points in 2007 soon, he said.

Vietcombank shares (VCB) have increased by 27 percent since the beginning of the year. The figures for Bank for Investment and Development of Vietnam (BID) and Vietinbank (CTG) are 27.5 percent and 13 percent, respectively.

Brent crude price closed Friday at $70.52, up 5 percent from last year’s ending figure and up 57 percent from last year’s lowest hit on June 21.

PetroVietnam Gas Joint Stock Corporation shares (GAS) have climbed 12.8 percent since the beginning of this year. The figure for PetroVietnam Drilling & Well Services (PVD) is 26.7 percent.

Lan said large-cap stocks in the finance-banking and securities sectors were likely to rise further, due to the strong purchasing power of foreigners, as those companies were forecast to perform even better in 2018.

Additionally, the State capital withdrawal plans in some State-owned enterprises would entice buyers, especially in the energy and chemical sectors, he added.

Among those companies, PetroVietnam Power Corporation on January 31 will put 468 million shares for sale at its initial public offering (IPO) at the starting price of 14,400 VND per share.

At the IPO of the Vietnam Oil Corporation held on January 25, the company successfully auctioned over 206 million shares at a starting price of 13,400 VND to earn 184 million USD, 51 percent higher than expected result.

Binh Son Refining and Petrochemical Company earned 244.5 million USD from the IPO of nearly 242 million shares or 7.79 percent of its charter capital. The result was 55 percent higher than expected.-VNA