VietNamNet Bridge – Investors cheered good business results of large-cap companies which helped boost shares on both national stock exchanges last week. This uptrend is expected to advance into this week's trading.

FPT Securities staff members place customers' orders into the trading system. Last week's uptrend is expected to advance into this week's trading.

On the HCM City Stock Exchange, the VN-Index increased 1.43 per cent over the week, closing Friday at 507.79 points, while the HNX-Index on the Ha Noi Stock Exchange rose 0.89 per cent to stand at 62.25 points.

Strong advancement of familiar blue chips such as Masan Group (MSN), VinGroup (VIC), PV Gas (PV Gas), Bao Viet Holdings (BVH), Hoang Anh Gia Lai Corp (HAG) and PetroVietnam Drilling and Well Services (PVD) continued to support the market rally.

These companies all posted high business results in the second quarter and first half of the year.

The VN30 tracking the top 30 shares by market capitalisation and liquidity also jumped 1.25 per cent over the course of the week to 559.16 points.

The market also saw rising investments in speculative stocks.

Active trading on hot stocks including Tan Tao Investment Industry (ITA), Kinh Bac City Development (KBC), Hoang Quan Consulting Trading Service Real Estate (HQC), PetroVietnam Transportation (PVT) and communications equipment maker Viet-Han Corp (VHG) helped promote overall trading and consolidated market gains.

Liquidity on the two bourses improved significantly.

Nearly 45.7 million shares averaging VND871.7 billion (US$41.5 million) were traded in each session on the HCM City Stock Exchange, up over 53 per cent compared to the previous week's daily volume level.

The similar figure on the Ha Noi Stock Exchange was 18.6 million shares worth VND173.3 billion ($8.3 million), up 15 per cent over the previous week.

According to analysts at FPT Securities Co, the market still lacks supporting macro economic information which is strong enough to be able to retain stable investments from both domestic and foreign investors.

"However, information about good business results from listed companies, especially leading ones, will help prolong the market rally in the next few sessions," they wrote in a research note.

The foreign sector alternated between buying and selling but still concluded as net buyers on the two exchanges last week, responsible for a combined net buy of VND92.2 billion ($4.4 million) worth of shares.

Their buys focused on major stocks such as PV Gas (GAS), Masan Group (MSN), PetroVietnam Drilling and Wells Service (PVD), Phu My Fertiliser (DPM), and Hoa Phat Group (HPG).

FPT Securities Co's analysts said profit-taking activities would be stronger as the VN-Index approaches 510 points. The market is fluctuating around the current resistance level of 507-509 points and the short-term trend will be determined at this level.

According to many analysts, in the context that the gold market is volatile and deposit rates are low, in the short term cash flow will likely pour into the stock market.

Source: VNS