Investors watch market movements at Saigon Securities' trading floor. — VNS Photo Doan Tung

HA NOI (Biz Hub) — Vietnamese shares may rise this week, as investor confidence has improved following positive macroeconomic news, Sai Gon-Ha Noi Securities Corporation (SHS) wrote in its weekly report.

Additionally, the benchmark VN Index on the HCM Stock Exchange and the HNX Index on the Ha Noi Stock Exchange will test the ceilings of 580 points and 81 points, respectively, after they failed to move beyond these marks last week, SHS said.

Meanwhile, the benchmark VN Index on the HCM Stock Exchange on Friday dropped 0.6 per cent to finish the week at 575.82 points. Also, the southern index fell slightly, by 0.2 per cent last week.

The HNX Index on the Ha Noi Stock Exchange on Friday ended nearly unchanged at 80.59 points, an increase of 0.6 per cent from the previous week.

The stock markets may count on investor confidence, which improved last week after central banks throughout the world pledged to provide additional stimulus plans to boost the demand for growth.

The US Federal Reserve Bank, the financial institution that recently drew the greatest attention, on Wednesday announced it would keep interest rates stable, while reducing the pace of rate hikes this year.

That decision strengthened other currencies against the US dollar, bolstering crude prices on Wednesday and Thursday, before they fell on Friday. However, in general, crude prices managed to rise from the previous week.

US benchmark crude West Texas Intermediate (WTI) on Friday fell 1.9 per cent to close at US$39.44 per barrel, but gained 2.4 per cent during the trading week.

Further, London-traded Brent crude was down 0.8 per cent on Friday to close at $41.20 per barrel. Brent crude rose 2 per cent during the week.

The energy sector was mixed last week. PetroVietnam Gas Corporation (GAS) fell 4 per cent, while PetroVietnam Drilling and Well Service Corporation (PVD) and PetroVietnam Coating Corporation (PVB) increased 0.4 per cent and 1.6 per cent, respectively.

In addition, investors may focus on those companies that have performed well in the first quarter of this year, and those firms that have decided to allow foreign investors to raise their share of ownership in those businesses, such as An Phat Plastic and Green Environment JSC (AAA).

However, investor confidence decreased during the last two sessions of the last trading week as investors were waiting for the Germany-based investment fund Market Vectors Vietnam ETF's final decision on its investment portfolio for the next quarter.

This week, decreased investor confidence might pull markets down further, Maritime Securities Incorporation (MSI) wrote in its weekly report.

Such low confidence last week helped large-cap stocks decline, including financial firms.

Declining financial stocks included the Bank for Investment and Development of Viet Nam (BID), Vietinbank (CTG), Sacombank (STB), Bao Minh Insurance Corporation (BMI) and BIDV Insurance Corporation (BIC), Saigon Securities Incorporation (SSI), food and beverage producer Masan Group (MSN), property developer Vingroup JSC (VIC) and confectionery producer KIDO Group (KDC).

The markets may also face profit-taking on stocks that saw positive gains last week.

Dairy firm Vinamilk (VNM) rose 1.5 per cent during the week, steel producers Hoa Phat Group Corporation (HPG) and Hoa Sen Group (HSG) advanced 3.1 per cent and 2.9 per cent, and plastic producer Binh Minh Plastic JSC (BMP) surged 5.9 per cent.

Of note, market liquidity rose last week in both volume and value from the previous week. Both markets traded 230 million shares each day, worth VND3.89 trillion ($172.9 million), an increase of 15 per cent in trading volume and nearly 30 per cent in trading value. — VNS