Shares sag in sluggish trades

HA NOI — A strong increase in the volume of trades last week suggested that the recent period of consolidation on the HCM City Stock Exchange might be coming to an end, according to a report by analysts from HCM City Securities Co.

The VN-Index ended Friday's session at 489.22 points, a gain of 1.53 per cent over the previous week's close. Volume rose 11.3 per cent, however, to a daily average of 35.3 million shares, with trades averaging a value of VND890.4 billion (US$42.4 million) per session.

"If VN-Index fails to break through its resistance mark, another correction could take place and the Index could fall back down to its current supporting level of 480 mark, continuing the consolidation," said the analysts. "But an uptrend in the medium-term is not impossible."

Viet Nam International Securities Co general director Pham Linh said that some sessions over the past time saw strong increases in volumes, as well as gains in real estate and financial and securities shares.

"Real estate will see high growth this year, especially in the south, because real estate prices did not increase as rapidly last year," Lind added, predicting great potential as well in the petroleum industry.

According to the website stockbiz, foreign investors last week continued as net buyers on the HCM City market, picking up a net of nearly 10.9 million shares, with a net value of VND301 billion ($14.3 million).

Among the shares favoured by foreign investors, Vietcombank (VCB) took the lead with a net-buy volume of over a million shares worth VND31.7 billion ($1.5 million). Hoang Anh Gia Lai (HAG) saw a slightly lower overall volume by overtook VCB in value, with foreign investors acquiring a net of VND42.1 billion ($2 million) worth of HAG shares.

Foreign investors were also net buyers on the Ha Noi Stock Exchange last week, but bought a net of just VND24.1 billion ($1.15 million).

In Ha Noi, the HNX-Index closed down 1.81 per cent on the week to 108.05 points. The value of trades reached an average of just VND503 billion ($24 million) per day, while the daily volume averaged 27.5 million, an increase of 12.5 per cent over the prior week's average.

Source: vnagency.com.vn