Saturday, 16 Dec 2017

Hanoi: Investors pay attention to stocks on first quarter

Updated at Tuesday, 11 Apr 2017, 10:55
The Hanoitimes - On April 11, shares grew at a slower pace on the two stock exchanges as investors displayed caution ahead of the annual shareholder meetings of big companies this month.
On the Hanoi Stock Exchange, the HNX-Index also inched up 0.3 percent to end at 90.4 points. The northern market index has expanded nearly 13 percent this year. Liquidity decreased with a total of 220.7 million shares worth a combined 4.4 trillion VND (192 million USD) traded in the two markets, down 14.8 percent in volume and 10.2 percent in valued compared to the daily average volume and value recorded last week.

According to analysts at Bao Viet Securities Co, the rally of indices was still supported by some large-cap stocks, while cash flows have yet to reach a necessary level, which could make the market volatile. Banks and other financial firms such as Vietcombank (VCB), BIDV (BID), Vietinbank (CTG), Military Bank (MBB), Asia Commercial Bank (ACB) and private equity firm Masan Group (MSN) all declined.

On the other side of the fence, securities companies rose strongly, including Saigon Securities Inc (SSI), VNDirect Securities Co (VND), Saigon-Hanoi Securities Co (SHS) and BIDV Securities Inc (BSI) with gains of between 3 and 9 percent each.

Some major shares, such as insurer Bao Viet Holdings (BVH), real estate giant VinGroup (VIC), Vietjet Air (VJC), steelmaker Hoa Phat Group (HPG) and brewery Habeco (BHN) also climbed and supported the market. “Investors should avoid aggressive buying when the index has surpassed peaks and wait for clearer signals,” Tran Hai Yen, an analyst at Bao Viet Securities Co, wrote in a note.

Major companies - Vinamilk, Vietcombank, BIDV, Saigon Securities Inc, VinGroup (VIC) and Vietjet (VJC) - will hold their annual meetings this month and information surrounding these meetings is likely to have an impact on investor psychology.

BIDV Securities Co’s analysts have warned the market could see a correction if the released earnings reports at these meetings fail to meet investor expectations. Shares will continue to rise this week as investor sentiment remains positive, analysts said, driven by expectations that good earnings reports will be released in the “shareholder meeting season.”

For example, steel producers’ stocks are moving up after underperforming for a while. Foreign investors recorded a net buy value of 225.6 billion VND in Vietnam’s stock market last week, down 74.5 percent from the previous week.

The market could also be pulled down by the pressure of profit-taking that targets stocks that have risen recently based on forecast first-quarter earnings. An example last week was Sacombank. The bank’s shares have soared nearly 18 percent since March 28 after speculation emerged on its restructuring process.
By Anh Kiet
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