VietNamNet Bridge – Shares fell on the HCM City Stock Exchange last week, but gained slightly on the northern bourse.

Also, trading was sluggish as investors remained cautious.

The increased activity of securities stocks was the market's highlight of the week, which helped the benchmark indices to advance on Friday.

The VN-Index on the southern bourse lost 0.54 per cent last week, to end at 559.04 points. The HNX-Index on the Ha Noi Exchange rose slightly by 0.07 per cent to close at 75.85 points.

Caution spread throughout the market, with the trading volume and value falling to a low level. FPT Securities said that low market liquidity was a problem to continue watching this week.

On the HCM City Stock Exchange, the daily trading value remained below VND1 trillion (US$47.6 million), except on Monday.

The southern bourse's trading value averaged VND940 billion ($44.7 million) on an average of 65.3 million shares changing hands per session, respectively, 37 per cent and 37 per cent lower than the previous week.

The average trading volume and value on the Ha Noi Exchange were also, respectively, 32 per cent and 34 per cent lower than the previous week, at 43.5 million shares and VND392.5 billion ($18.6 million).

Caution caused the benchmark indices to open last week with losses as sell-offs occurred on both speculative stocks and blue chips.

After a slight rebound on Tuesday, shares tumbled as investors were not willing to join in trading and caution grew, along with falling liquidity.

However, on Friday the capital inflow into the speculative stocks, especially stocks of the securities and real estate sectors, suddenly returned, helped boost the benchmark indices while blue chips continued declining.

This was due to information that securities companies will be the first to be allowed to increase foreign stakes.

Of note, many securities stocks increased their ceiling prices after the news, including Sai Gon Securities (SSI), Agribank Securities (AGR), HCM City Securities (HCM) and BIDV Securities (BSI).

However, Rong Viet Securities said that the impact on the market would be short term, as it would take time for a securities company, from at least three to six months, to increase foreign holdings after the draft regulation was passed.

According to SHB Securities, the market was creating opportunities for investors to increase stock holdings in their portfolios, which would turn stimulate a market rebound. However, as the capital inflow into the market remained low, accumulations of shares would continue this week.

Also, foreign investors purchased a net VND410 billion ($19.5 million) last week.

PetroVietnam Gas Corporation (GAS), PetroVietnam Fertilisers and Chemicals Corporation (DPM), Masan Group (MSN), and Hoang Anh Gia Lai (HAG) were heavily-traded by foreign investors.

Source: VNS