Trading orders at BIDV Securities Corp. Markets are expected to struggle this week as banks and oil companies face difficulties. — VNS Photo Truong Vi

HA NOI (Biz Hub) — Viet Nam's stock market will be tested again this week, as pressure is placed on financial and energy stocks expected to suffer from macroeconomic factors, analysts told local media during an online interview late last week.

On Friday, the benchmark VN Index on the HCM Stock Exchange edged down 0.3 per cent to finish last week at 664.56 points, falling 1.6 per cent in the last two sessions. The southern market index rose 0.9 per cent from the previous week.

Meanwhile, the HNX Index on the Ha Noi Stock Exchange inched down slightly to end at 86.63 points. The northern market index totaled a two-day decline of 0.9 per cent and slid 1.1 per cent last week.

"Financial stocks will likely struggle this week, as shareholders continue to take profits from those stocks after their significant gains," Le Nguyet Anh, head of market analysis at Asia Commercial Bank Securities Corp (ACBS), said.

Among all banks, Joint Stock Commercial Bank for Foreign Trade of Viet Nam (VCB) surged 5.9 per cent last week, Viet Nam Joint Stock Commercial Bank for Industry and Trade (CTG) soared 8.7 per cent, the Bank for Investment and Development of Viet Nam (BID) jumped 3.9 per cent, and Viet Nam Import-Export Commercial Joint Stock Bank (EIB) advanced 10.8 per cent.

Among insurance companies, Bao Viet Holdings (BVH) rose 5 per cent, BIVD Insurance Corp (BIC) jumped 3.3 per cent, and Bao Minh Insurance Corp (BMI) added 2.6 per cent.

Financial firms' shareholders will also be watching the trial of former Viet Nam Construction Bank's officials, Anh said. Those officials are accused of withdrawing US$528 million from the bank for private use, resulting in a loss of $396 million to the bank.

The case has stirred investors' fears over whether local banks can properly manage their bad debts, she said.

Additionally, energy stocks will continue to suffer from decreasing oil prices, which are now below US$50 a barrel, Anh added.

US crude West Texas Intermediate on Friday ended at $45.95 a barrel, up 0.6 per cent from Thursday and 2.7 per cent from Wednesday. US crude has plunged 7.9 per cent since June 29.

Top energy stocks, such as PetroVietnam Gas Corp (GAS), PetroVietnam Drilling and Well Service Corp (PVD) and PetroVietnam Technical Service Corp (PVS), have also dipped in the last two sessions.

GAS has been down 3.1 per cent, PVD has dropped 4 per cent and PVS has declined 1.1 per cent.

Positive outlook

Real estate stocks, including Vingroup JSC (VIC) and consumer goods producers such as Viet Nam Dairy Products JSC (VNM), could be the focus in coming weeks on expectations, since they reported positive earnings during the past quarter, and foreign investors will soon raise their ownership in VNM, Anh said.

Of note, securities companies may continue to be a favorable option for investors, as market trading liquidity remained high last week, resulting in positive performances for those firms in the third quarter, Anh said.

Also, investors last week exchanged more than 224 million shares each session, worth VND4.16 trillion ($185 million), up 6.5 per cent in trading volume and 3.4 per cent in trading value from the previous week.

Stocks are not expected to fall sharply, as global markets and the country's macroeconomics have shown positive signals, especially as the Government expressed its determination to improve the domestic business environment, Phan Dung Khanh, head of investment division at MayBank KimEng Securities Corp, said. — VNS