Wed. Feb 28th, 2024

VietNamNet Bridge – The VN-Index surged over 500 points last week, reaching 502.58 points on Friday and increasing 2.35 per cent over the previous week.


 VN-Index, HNX-Index, SJS

An investor tracks shares on the board of a trading floor of Saigon Securities Inc in Ha Noi.

Meanwhile, the HNX-Index also rose 1.24 per cent to 61 points.

Trading value on the HCM City Stock Exchange jumped 40 per cent over the previous week, averaging over VND1 trillion (US$47.6 million) per session with an average of 55.4 million shares changing hands.

On the Ha Noi Stock Exchange, trading also improved around 27 per cent as the average value and volume of trades reached VND323.3 billion ($15.3 million) and 42 million shares respectively.

Foreign investors saw ups and downs but concluded the week as buyers by a margin of VND407 billion ($19.3 million). The total net buys of foreign investors since earlier this year reached VND4.5 trillion ($214.2 million).

Trading was affected by the suspension of shares belonging to Song Da Urban and Industrial Zone Investment and Development (SJS), Ninh Van Bay Travel Real Estate (NVT) and Hang Xanh Motor (HAX) due to two consecutive years of losses.

The suspension of these speculative stocks negatively affected the stock market for at least two sessions. The Ha Noi Stock Exchange also put a control marker on PetroVietnam Construction (PVX).

Fortunately, shares rallied on Friday as cash moved to blue chips, an effect that spread to many other stocks. The Government’s request to reduce interest rates this month also boosted stocks.

Also last week, banks and relevant agencies made forecasts for the nation’s gross domestic product (GDP) growth. The National Financial Supervisory Commission expected the figure could reach 5.3 per cent this year, while HSBC predicted it would hit 5.5 per cent and ANZ said Viet Nam’s GDP growth was below its potential.

HSBC reported that Viet Nam’s Purchasing Managers’ Index (PMI) in March exceeded its average level to 50.8 points. Although PMI growth was quite low, this was the second highest level it reached in the last two years.

New export orders rose in March for the first time in 11 months. Manufacturers said that the recent development in export sales could be attributed to more demand from China, Japan and Thailand.

Inflation is expected to increase only slightly this month compared to March, while the authorities work to remove challenges for enterprises and unfreeze credit.

This month many businesses will release quarterly reports and business strategies for the year, which will have a positive impact on cash flow to the market, according to PetroVietnam Securities Co’s analyst Dao Hong Duong.

“Despite economic difficulties, several companies had pretty good operations, creating opportunities to lure cash back,” he said.

While Duong was optimistic, he did not assure a “hot” increase: “Investors should give priority to stocks from the pharmaceutical and rubber industries and blue chips.”

After the unsuccessful gold auction on March 28, where only 7.7 per cent of bids sold and the price was higher than expected, the State Bank of Viet Nam held two other auctions last week.

A total of 25,700 taels of gold was sold in each auction, where prices were lower than the market price. (One tael equals 1.2 ounces).

Source: VNS

By vivian