Tiếng Việt
普通话
Investor confidence had yet to improve even as the central bank hinted at more policy rate cuts in June at the meeting with G14 commercial banks last Friday.
Selling pressure accelerated toward the end of the afternoon session on the southern bourse last Friday, dragging VN-Index down 0.4 point, or 0.09%, to close at 428.8, while the VN30 Index also dropped 1.42 points to close at 505.65 with 13 tickers turning down.
Meanwhile, the HNX-Index finished with a slight gain of 0.39% to stay at 74.36.
Viet Capital Securities Co. said May was a depressing month for the VN-Index after the index hit a fresh 2012 high of 492.44 points, a nearly 48% move from the 332 low in January 2012. However, the index failed to break through the psychological resistance of 500 points and corrected around 19% from its peak to 435 points as of May 30.
“We expect the VN-Index to hover around between 430 and 435 points as the short-term indicators triggered a fresh buy signal at the end of last week. Also the medium-term momentum should turn up again, which then again is coherent with the rising long-term momentum,” it said.
“In the meeting with the G14 commercial banks, the central bank mentioned that it may again lower the interest rate to support the sluggish economy. The lower policy rates may continue to support the equities market in the long run as savings become less attractive but the news is really no surprise and the markets have already priced it in,” the broker added.
HCMC Securities Co. noticed the quarterly review for June of the FTSE Vietnam Index and FTSE Vietnam All-Share Index posted on their website last Friday. The FTSE Vietnam Index will see no inclusions but REE, PET and KDH will be excluded.
Then for the FTSE Vietnam All-Share Index, a broad market benchmark covering the top 90% of the eligible universe by full market capitalization, it will also see no inclusions but DHG, VCF, PGD, ASM and LCG will be excluded. In terms of weight changes, CTG, STB and MBB will see weights reduced substantially while KBC will see its weight reduced somewhat and only KDC will see its weight increased. These changes will affect any fund that tracks the index of course and may have some market impact over the next few days or weeks.