Vietnamese shares may bounce back this week, as exchange traded funds (ETFs) completed reviewing their investment portfolios, and oil prices had a strong recovery on Friday, to bolster investor confidence.— VNA/VNS Photo

HA NOI (Biz Hub) — Vietnamese shares may bounce back this week, as exchange traded funds (ETFs) completed reviewing their investment portfolios, and oil prices had a strong recovery on Friday, to bolster investor confidence.

The benchmark VN Index on the HCM Stock Exchange fell 0.9 per cent on Friday, to finish the week at 619.25 points. The southern market index closed down 1.7 per cent from the previous week.

Further, the HNX Index on the Ha Noi Stock Exchange edged down 0.3 per cent to end Friday at 83.92 points. The northern market index lost 1.1 per cent during the past five trading days.

"The ETFs have finished reviewing their second-quarter investment portfolios, and that may help improve investor confidence this week," said Dao Hong Duong, PetroVietnam Securities Inc's head of Investment Division.

Investors may find opportunities to purchase stocks that declined strongly during the ETFs' review of the second-quarter, BIDV Securities Corp (BSC) wrote in a report.

Last week, investors on global stock markets were cautious ahead of the US central bank's meeting, on expectations that the US central bank would keep interest rates unchanged and signal fewer rate increases this year.

While the US central bank's decision had little impact on Viet Nam's stock markets, it was the ETFs, with their review of second-quarter investment plans, that weighed on investor confidence in Vietnamese stocks.

Foreign investors last week recorded total net sales of VND571.5 billion (US$25.4 million), which was a large drawback, compared to a total net buying of VND408.8 billion in the previous week, as ETFs sold and removed some local stocks from their investment portfolios.

Almost all stocks that were removed and sold by the ETFs declined. Property and retail firm Vingroup JSC (VIC) slumped 3.7 per cent during the week, HHS lost 4 per cent, and Sai Gon Securities Inc (SSI) declined 6.8 per cent.

ETFs also bought some local stocks, such as consumer goods producer Masan Group (MSN), GTN Foods JSC (GTN) and IB Securities JSC (VIX). MSN rose 1.4 per cent last week, GTN surged 16 per cent and VIX jumped 4.2 per cent.

Additionally, a strong rebound in oil prices may help bolster investor confidence, said Duong, the analyst from PetroVietnam Securities Inc.

Global crude prices recovered strongly on Friday to end a six-day decrease, as the US dollar weakened on global exchanges.

US crude West Texas Intermediate (WTI) jumped 3.8 per cent and London-traded Brent crude jumped 3.8 per cent and 4.2 per cent to close at nearly $48 and $49 per barrel, respectively, after falling some 11 per cent during the previous six days.

Local energy stocks may benefit from that strong rebound, especially large-cap stocks, such as PetroVietnam Gas Corp (GAS), PetroVietnam Drilling and Well Service Corp (PVD), PetroVietnam Technical Service Corp (PVS) and PetroVietnam Coating Corp (PVB).

GAS was down 1.7 per cent during the past five days, PVD lost nearly 12 per cent, PVS slumped 9.1 per cent and PVB declined 6 per cent.

Investors last week exchanged nearly 173 million shares each session, worth VND2.8 trillion. These figures were down 7.2 per cent and 8.2 per cent from those made in the previous week. — VNS