This picture taken on May 28, 2012 shows Vietnamese workers walking past the Stock Exchange building in Ho Chi Minh City. AFP PHOTO/Francois MAY
HANOI: The Vietnamese stock market saw a weekly loss in the shortened trading week, with funds concentrating on selected stock groups while others experienced significant trading sessions.
Analysts suggest holding a prudent cash ratio can assist investors in reducing risks and seizing opportunities in times of more favourable market dynamics.
Last week, the domestic stock market reopened on Wednesday after a long national holiday and had only three trading days.
Although the market witnessed a recovery in the final trading session, partially alleviating the VN-Index’s decline, overall market sentiment has yet to fully recover.
The VN-Index on the Ho Chi Minh Stock Exchange (HoSE) closed last Friday at 1,273.96 points, while the HNX-Index on the Hanoi Stock Exchange (HNX) was last traded at 234.65 points.
For the week, both the benchmark indices posted weekly losses, down 0.77% and 1.2%, respectively.
Market developments showed a pronounced struggle between sellers and buyers, reflecting apprehension due to the unclear market trend.
Liquidity on both exchanges notably dwindled last week compared with the preceding week, with trading volumes plummeting by 44% on HoSE and 42.5% on HNX.
Foreign investors also persisted in their robust selling streak, amounting to over 1.2 trillion dong or about US$48.7mil.
Beta Securities Inc said it expects that the market is poised to undergo a period of correction and tug-of-war in the near future.
This is a critical period for investors to carefully consider stock accumulation.
Maintaining an optimal cash reserve would not only mitigate risks for investors but also position them to seize opportunities in a more favourable market environment, the firm added.
Meanwhile, the current global economic background remains turbulent, with market expectations particularly focused on the upcoming interest rate decision by the US Federal Reserve.
Domestically, core inflation rose by 0.24% in August from the previous month and 2.53% from a year earlier, a report from the General Statistics Office showed.
Over the first eight months of the year, core inflation increased by 2.71% year-on-year, lower than the overall consumer price index rise of 4.04%. — Viet Nam News/ANN
