The benchmark VN-Index has ended its winning run of nine consecutive weeks under heavy profit-taking selling pressures. The market is forecast to remain volatile due to ongoing portfolio restructuring of exchange-traded funds.

On the HCM Stock Exchange, the VN-Index decreased 0.3 per cent for the week, closing Friday at 712.6 points, and narrowed its yearly gain to 7.2 per cent.

Large-cap stocks have lost their growing momentum, as investors increased selling in these stocks and channeled money in speculative investments to seek larger returns.

Leading stocks in their industries, such as dairy firm Vinamilk (VNM), PV Gas (GAS), IT group FPT (FPT), Saigon Securities Inc (SSI) and Military Bank (MBB), all slumped last week.

Among gainers, shares of budget airline Vietjet (VJC) soared 46.8 per cent in value since its debut on February 28, reaching VND132,100 (US$5.79) per share.

FLC Faros Construction (ROS) recorded the longest running streak, rising constantly since December 14, 2016. Its share price has climbed 51.5 per cent in nearly three months to VND152,70.

FTSE, a London-based index provider, on Friday announced it would add shares of FLC Faros and two other property stocks, including Hoa Binh Construction (HBC) and Dat Xanh Real Estate Service and Construction (DXG), into its FTSE Vietnam Index in the first quarterly review of 2017.

Meanwhile, the $250 million exchange-traded fund will remove five other Vietnamese stocks from the basket for the index calculation. The changes take effect on March 20.

Except for ROS, two other firms had negative performances last week. HBC shares decreased 4.5 per cent in value, while DXG fell 1.1 per cent last week.

“The market is expected to be volatile in the coming week, with a focus on ETF’s actions,” said Tran Duc Anh, a stock analyst at Bao Viet Securities Co.

Besides FTSE, VanEck Vectors Vietnam ETF is expected to announce its first quarterly review on March 10.

According to Anh, although selling pressure was generally quite strong, positive developments in other large-cap stocks, such as FLC Faros, Vietjet, Vietcombank (VCB) and brewery Sabeco (SAB), still provided good support for the marker, Anh said.

Among speculative stocks, realty stocks remained a magnet thanks to large profits last year, as well as a positive 2017 outlook.

Dat Xanh Real Estate Service and Construction Corporation gained 66.8 per cent this year, while Hoa Binh Corporation (HBC) gained 35.5 per cent. Khang Dien House Trading and Investment JSC (KDH) and Novaland Investment (NVL) increased 13.6 per cent and 16.5 per cent, respectively, this year.

Liquidity decreased on the southern bourse last week, with daily trading volume averaging nearly 189 million shares, worth over VND3.3 trillion ($145.6 million) per session, down 14.5 per cent in volume and 13.3 per cent in value compared to the previous week’s figures.

“The market is segmented and the risk increases in hot rising stocks,” analysts at Vietnam Securities Co warned in a report, noting the VN-Index could retreat to 710 points, before bouncing back on bargain demands.

On the smaller exchange in Ha Noi, the HNX-Index increased 0.4 per cent for the week, ending Friday at 86.65 points with an average 55.4 million shares, worth VND527 billion ($23.1 million) traded in each session.

Foreign investors concluded the week as net buyers on the two exchanges, for a combined net value of VND257 billion. Their purchases focused on hot tickers, such as Vietjet, Hoa Phat Group, Vinamilk and FLC Faros. — VNS