The benchmark VN Index on the HCM Stock Exchange on Friday inched down 0.2 per cent to finish last week at 610.82 points. — VNS Photo Gia Vi

HA NOI (Biz Hub) — Vietnamese shares may decline this week as leading sectors continue to seek profits after recent gains and companies expect no good news to support investor sentiment, brokerage firms and analysts forecast.

The benchmark VN Index on the HCM Stock Exchange on Friday inched down 0.2 per cent to finish last week at 610.82 points, extending a two-day decline of 0.5 per cent. Also, the southern index posted an increase of 0.7 per cent from the previous week.

The HNX Index on the Ha Noi Stock Exchange on Friday added 0.3 per cent to end at 81.27 points, rising 1.3 per cent during the last three sessions. The northern index rose 1.1 per cent during the week.

Banks may be a burden on local markets, as they were during the last two trading days, as investors tried to realise profits from recent gains in bank stocks.

The three largest banks on the stock market, Vietcombank (VCB), Vietinbank (CTG) and the Bank for Investment and Development of Viet Nam (BID), signaled a short-term decline last week after these stocks were boosted by positive first-quarter business performances and by expectations that they will be allowed to lift the bar for more foreign ownership.

VCB lost 0.8 per cent on Friday to extend a decline of 2.9 per cent for a second day, while CTG and BID struggled to remain flat after decreasing during the Friday session.

Other smaller banks, such as Sacombank (STB), Eximbank (EIB) and Sai Gon-Ha Noi Bank (SHB), may also face selling pressure this week, as they recorded strong growth in the last two sessions.

Additionally, steel producers may suffer slower growth in production and profits in coming weeks, as demand for steel output for construction projects is expected to fall during the rainy season and steel prices will settle on the global exchanges, Bao Viet Securities Corp (BVSC) wrote in a report.

Leading companies in the steel industry included Hoa Phat Group (HPG), Hoa Sen Group (HSG), and Vietnam-Germany Steel Pipe JSC (VGS). HPG, in the first four months of the year, sold 545,661 tonnes of steel products, an increase of 25 per cent over the year, becoming the second-largest company in the domestic steel market, with a 20-per-cent market share.

HPG has gained one-third in the last four months, and HSG has also nearly doubled in the last four months, while VGS has nearly doubled since the beginning of the year.

Other stocks that may also turn into negative territory this week due to profit-taking include Truong Thanh Furniture Corp (TTF), An Phat Plastic and Green Environment JSC (AAA), Kim Long Securities Corp (KLS) and animal feed supplier Dabaco Group (DBC).

On the opposite side, energy stocks may boost investor confidence after they benefited from higher oil prices during the week. Those stocks included PetroVietnam Gas Corp (GAS), PetroVietnam Drilling and Well Service Corp (PVD) and PetroVietnam Technical Service Corp (PVS).

Meanwhile, US crude West Texas Intermediate (WTI) on Friday slid 1.1 per cent to close at US$46.21 per barrel after surging 7.5 per cent in the previous three sessions, however it still posted a weekly gain of 3.5 per cent.

Both local markets exchanged more than 173 million shares each day, valued at VND3 trillion ($135.2 million), a slight decrease in trading volume and a slight increase in trading value over the week. — VNS