Shares are expected to move modestly in the coming two trading sessions as investors settle trading before the Tet (Lunar New Year) holiday, while concerns remain following recent turbulence in global markets.
The benchmark VN-Index on the HCM Stock Exchange was down 1.89 per cent to close Friday at 1,003.94 points, totalling a two-day loss of 3.5 per cent.
The HNX Index on the Ha Noi Stock Exchange edged up 0.48 per cent to end at 117.50 points, recovering from its one day decline of 4.47 per cent.
The two stock indices witnessed a weekly loss of 9.1 per cent and 5.2 per cent, respectively, as the volatility of global stock markets dampened investor confidence, leading to a massive sell-off on the Vietnamese market.
An average of more than 292.5 million shares were traded in each session, worth VND9.32 trillion (US$414.5 million).
The trading figures were down 21.5 per cent in volume and 2.1 per cent in value, compared to the previous trading week’s numbers.
The UPCOM Index on the Unlisted Public Company Market (UPCoM) finished at 56.48 points, slightly above the reference level of 56.46 points.
Furthermore, the unlisted market index fell 4 per cent after the five trading sessions of the week.
Analysts and investors attributed the strong fall on the Vietnamese stock market to negative impacts created by the world market, as international investors worried that the US central bank could raise its interest rates faster and higher than expected this year.
Such concerns triggered a massive sell-off across global markets and had a negative influence on Vietnamese stocks. In the first two sessions of the week, Viet Nam’s stock market lost some $14 billion in total market capitalisation.
In addition, oil prices posted the largest weekly drop in one year. Brent crude lost nearly 10 per cent in the last two weeks, to end Friday at $62.79 a barrel, the lowest since December 14, 2017.
The worst decliners were financial firms (insurers and brokerages), banks, energy companies and real estate businesses, such as Vingroup (VIC), PetroVietnam Gas (GAS), Bao Viet Holdings (BVH), Petrolimex (PLX) and Bank for Investment and Development of Viet Nam (BID).
Though the sharp decline in local markets triggered investors to purchase cheaper-than-expected stocks, it did not cover the fact that investor sentiment was quite poor, due to concerns about the continuance of global market volatility.
According to brokerage companies, investors will trade quietly in the next two sessions, before the Vietnamese stock markets close for the Tet holiday. The three exchanges and securities companies will begin the holiday on Wednesday, February 14, and open again on February 21.
“Given the sentiments before the week-long holiday, the market will remain dull, with declining liquidity,” Bao Viet Securities Company (BVSC) said in its weekend report.
The stock indices are expected to continue to decline with “high divergence among groups of stocks, owing to bottom-fishing demands,” it said.
The market will suffer a strong fluctuation this week due to investors’ caution and concerns about short-term market trends, especially after trading liquidity showed signs of declining and the market breadth was negative, BVSC added.
Sharing a similar market outlook, BIDV Securities Company (BSC) said the market is showing unclear signs of movement at the moment, thus investors should limit their trading and return in the post-Tet period after the market comes back to its normal trading condition.
The VN-Index is forecast to reach 1,050-1,092 points, BVSC reported. — VNS