After gloomy days, the July 15-19 week began with low liquidity that occurred on the first two trading sessions of the week. There was no sign of cash flow coming back.

However, some shares saw positive movement, especially some pharmacy shares, with prices hitting the ceiling on July 16, including Hau Giang Pharmacy (DHG), Imexpharm (IMP), and Ha Tay Pharmacy (DHT).

IMP share prices reached a new peak of VND93,400 per share after increasing by nearly 50 percent within one month. The pharmacy firm is consulting with shareholders on a plan to increase capital by twofold.

Cash flowed into pharmacy firms because of good business performance. Foreign investors hold controlling stakes in many listed pharmacy firms. SK Investment (South Korea), for example, holds the controlling stake in IMP (64.8 percent).

Bank shares also had a satisfactory week, when cash flow had no attractive destination. MBBank shares (MBB) saw prices increase by 10.4 percent, VietinBank (CTG) 4.4 percent, and BIDV (BID) 2.4 percent.

Meanwhile, other shares were put under pressure after their prices rose for a certain period. Investors sold shares to take profits after a ‘hot’ development period. Vietnam Airlines (HVN), SMC Steel and HVN prices fell by 24.1 percent, while Vietnam Rubber Group (GVR) decreased by 8.9 percent. 

Real estate shares were a burden on the stock market last week with many shares seeing prices sliding, including Novaland (NVL), PhatDat (PDR), DatXanh (DXG), and DIC Corp (DIG).

However, Vingroup shares (VIC) and Vinhomes (VHM) saw prices increase late last week, thus helping ease pressure on the market.

Industrial real estate shares saw positive signs last week amid high demand from foreign investors.

PC1, for example, increased significantly as Western Pacific, an affiliate of PC1, got approval for investment in two industrial zone projects capitalized at $177 million.

The other positive sign of the week was lower foreign investors’ net sales and improved liquidity of the market.

From July 15 to July 19, the VN-Index decreased by 1.2 percent to 1,265 points, while the HNX-Index decreased 1.8 percent to 240.5 points and UpCom-Index fell by 1.4 percent to 96.8 points.

The liquidity of the week increased by 3 percent to VND17,675 trillion per session. Foreign investors’ net sales dropped to VND758.2 billion on all three bourses (VND778.2 billion worth of net sales on HOSE (HCM City Stock Exchange), VND60.5 billion of net sales on HNX (Hanoi Stock Exchange), and net purchase of VND80.5 billion on UpCom).

High hopes

Though the VN-Index and other indexes decreased last week, the stock market had some positive signs, including lower foreigners’ net sales after the US FED sent a signal about a possible interest rate cut. The news prompted foreign investors to bottom fish in two trading sessions in the mid-week, according to VnDirect’s Dinh Quang Hinh.

Hinh said that market liquidity has improved, and there is no sign of cash outflow from the Vietnamese market.

Bank shares have attracted cash flow back amid credit resumption and positive business performance of some commercial banks.

However, the expert thinks the market lacks a driving force and positive information to help trigger a short-term upward trend. Therefore, choosing the right business fields and shares will determine profitability.

Prior to that, experts predicted that the VN-Index could rise to 1,300 points in the second half of 2024. However, some experts and investors are cautious amid upheavals in global and domestic markets.

The US dollar depreciated rapidly in the middle of last week, but appreciated again late last week. The FED may cut the prime interest rate in September and enter a period of loosening of monetary policy. However, the world and the US still have uncertainties.

The uncertainties, plus the pump of cash, may help prevent the US dollar from falling sharply. It is highly possible that cash flow will not change direction and head for emerging and development markets as expected before.

Manh Ha