Viet Nam’s benchmark VN-Index struggled to rise on Monday, but market conditions remained poor as investors remained cautious ahead of the US Fed’s meeting.
The key stock index on the HCM Stock Exchange inched up 0.18 per cent to close at 751.09 points, a slight recovery from a two-day loss of 0.5 per cent.
Market trading liquidity remained nearly unchanged compared to the previous two sessions with more than 184 million shares being traded, worth VND3.72 trillion (US$165.6 million).
The market trading condition was negative with decliners outnumbering gainers by 153 to 114, and two-thirds of the 30 largest companies by market capitalisation suffering.
The southern market index was pulled up by some large-cap stocks, including FLC Faros Construction (ROS), brewer Sabeco (SAB), fuel dealer Petrolimex (PLX), two banks BIDV (BID) and Vietinbank (CTG) and PetroVietnam Gas (GAS).
Among those shares, ROS hit its daily trading limit of 6.9 per cent after shares of FLC Faros Construction Group was added into the investment portfolio of V.N.M ETF, an exchange-traded fund under management of the VanEck Vectors Vietnam ETF.
ROS was also the most attractive stock to foreign investors, who poured a net buy value of VND19.6 billion into this stock, equal to 65 per cent of the total foreign net buy value recorded on Monday.
But despite the rapid rise of ROS, poor investor sentiment was illustrated in foreign investors’ low net buy value, which has dropped from a value of VND220 billion made on June 6 and remained modest since then.
The fall of foreign net buy value could be the result of foreign investors’ caution ahead of the scheduled two-day June 14 Fed meeting to decide whether it should increase interest rates this month.
However, Bao Viet Securities (BVSC) said in a note that a lending rates hike would not have a major negative impact on Viet Nam’s stock market as investors have already priced in the chance for a rate hike this time.
According to the brokerage, investors would pay attention to how many rate hikes could be made this year, and a smaller number of rate hikes for this year could be a boost for global stock markets in the short term.
On the Ha Noi Stock Exchange, the HNX-Index finished at 96.83 points, down 0.54 per cent from last week’s closing level. — VNS