VN shares may fall as investors look to sell energy, rubber stocks

On Friday, the benchmark VN Index added 0.6 per cent to finish the week at 573.65 points, rallying 2.6 per cent in the last four trading sessions. The southern index gained 1.3 per cent last week. - Photo stox

Further, securities firms predicted that the benchmark VN Index could be tested between 575 points and 580 points during the first trading session, before sliding for the remainder of the week. However, the VN Index would still improve in the middle-term and long-term period.

On Friday, the benchmark VN Index added 0.6 per cent to finish the week at 573.65 points, rallying 2.6 per cent in the last four trading sessions. The southern index gained 1.3 per cent last week.

Meanwhile, the HNX Index on the Ha Noi Stock Exchange climbed 0.5 per cent to end last week at 79.65 points, and the northern index advanced 0.7 per cent from the previous week.

Both local indices have shown strong improvements since the markets reopened after the Tet holidays. The VN Index has increased 5.3 per cent in the last three weeks and the HNX Index has risen 3.6 per cent.

Investors may take profits in energy stocks and natural rubber stocks, which advanced last week as global crude prices extended their recovery on expectations that the Organisation of Petroleum Exporting Countries (OPEC) and Russia may reach an agreement to cut production, while US production slid for a sixth week.

US benchmark crude West Texas Intermediate (WTI) on Friday jumped 3.9 per cent to close last week's trading at $35.92 a barrel. WTI has increased by 9.6 per cent from the previous week and 37 per cent since its twelve-year low of $26.21 a barrel.

The London-traded Brent crude surged 4.5 per cent to finish last week at $38.72 per barrel, having improved by 10 per cent last week, and gaining 16.4 per cent in the last eight trading days.

Among local energy stocks, PetroVietnam Gas Corporation (GAS) rose 8.9 per cent, PetroVietnam Drilling and Well Service Corporation (PVD) gained 2.9 per cent, and PetroVietnam Technical Service Corporation (PVS) jumped 4 per cent.

Rubber prices on the Tokyo Commodity Exchange on Friday added 1.7 per cent to close at 177 yen ($1.56) per kilogramme, while rubber prices rocketed 14 per cent last week.

Among local natural rubber producers, Quang Nam Rubber Investment JSC (VHG) gained 6.1 per cent last week, Dong Phu Rubber JSC (DPR) jumped 12 per cent, and Phuoc Hoa Rubber JSC (PHR) surged 13 per cent.

Investor confidence was also bolstered after China's central bank loosened its monetary policy, which then saw increases in Asian stock markets, including Viet Nam, and eased investors' concerns over a weaker Vietnamese dong.

Also, improved investor insurance lifted insurer Bao Viet Holdings (BVH), Bao Minh Insurance Corporation (BMI), insurer PVI Holdings (PVI), brokerage Sai Gon Securities Incorporation (SSI), dairy firm Vinamilk (VNM) and property developer Vingroup JSC (VIC), gaining 5.8 per cent, 4 per cent, 12 per cent, 1.3 per cent, 1.5 per cent and 1.8 per cent, respectively.

Additionally, market liquidity fell slightly from the previous week. Both local markets traded 187.6 million shares worth VND2.7 trillion ($120 million) during each trading session, a decrease of 6 per cent in trading volume and 20 per cent in trading value, compared to the previous week.