Stock trading boards at VCB Securities Company in Ha Noi. — VNS Photo Truong Vi

HA NOI (Biz Hub) — Vietnamese shares may not extend their gains this week, as investors might look for profits and local markets could lack good news from companies and global exchanges, brokerage firms wrote in the weekly forecast.

The benchmark VN Index on the HCM Stock Exchange rose 0.8 per cent to close on Friday at 606.52 points, up 1.4 per cent from the previous trading week. The southern index has rallied 2.5 per cent in the last four trading days.

Meanwhile, the HNX Index on the Ha Noi Stock Exchange was nearly flat at 80.37 points to extend losses for a third day at the end of Friday's session, down 0.4 per cent from the previous week.

Investors have signaled that they could look for profits in stocks that had good runs in previous sessions.

"Some blue chips that made recent gains ran into profit-taking last week, such as steel producers Hoa Phat Group JSC (HPG) and Hoa Sen Group (HSG)," Sai Gon-Ha Noi Securities Corp (SHS) wrote in its report.

Further, steel companies may continue to decline. HPG advanced 1.5 per cent from the previous week, HSG surged 6.4 per cent and Tien Len Steel Group JSC (TLH) rocketed 6.1 per cent.

Textile and garment enterprises also had an impressive trading week. For example, Thanh Cong Textile Garment Investment Trading JSC (TCM) increased by 6.7 per cent last week, and Mirae JSC (KMR) went up 8.1 per cent.

Meanwhile, the markets lacked a sector that can help them show steady gains, SHS said, adding that recent improving sectors, such as banks, energy firms and steel companies, have not displayed constant growth.

The banking sector was the most effective industry on the stock markets last week, as three major banks, Vietcombank (VCB), Vietinbank (CTG) and Military Bank (MBB), reported positive performances in the three months of 2016, which were better over the year.

Also, strong foreign purchases for bank stocks also helped boost the sector. Vietcombank, Vietinbank and the Bank for Investment and Development of Viet Nam (BID) received the largest foreign investment among nine listed banks.

VCB jumped 5.7 per cent and CTG gained 4.2 per cent during the week, while BID and MBB added 3.4 per cent and 1.2 per cent, respectively.

Other stocks that could see declines included HCM City Securities Corp (HCM) and consumer-goods producer Masan Group (MSN).

Meanwhile, investor sentiment was not positive enough, as investors mostly bought blue chips and large-cap stocks, which are considered safe assets, instead of increasing their purchases of mid-cap and small-cap stocks, Bao Viet Securities Corp (BVSC) said.

In addition, Viet Nam's stock markets may suffer from a common trend with the global markets, as they often decline during May and there is no supporting information for investors, an analyst from Viet Capital Securities Corp (VCSC) said.

Meanwhile, energy companies, such as PetroVietnam Gas Corp (GAS), PetroVienam Drilling and Well Service Corp (PVD), and PetroVietnam Technical Service Corp (PVS), provided no support for the markets due to the volatility of global crude prices.

US benchmark West Texas Intermediate (WTI) on Friday gained 0.8 per cent to close at US$44.66 per barrel, extending a three-day gain of 2.3 per cent after falling 4.9 per cent during the first two sessions of the week. In total, US crude posted a loss of 2.7 per cent from the previous week.

Market liquidity decreased last week in both trading volume and trading value, as the stock markets had only three trading sessions after the first two days were closed for national holidays. — VNS