Hanoi (VNS/VNA) - Sharesare forecast to slow down this week in the face of rising profit-takingpressure after a long rally, net selling by foreign investors and uncertaintybefore the portfolio restructuring period of exchange-traded funds (ETFs).

The benchmark VN-Index ended ninestraight weeks of gains with a loss of 2.1 percent in the first week ofDecember, closing December 8 at 940.16 points.

Vietnam’s benchmark index hadexpanded nearly 14 percent in November.

After a brief rise on December 4,the market experienced three consecutive falling sessions as profit-takingselling increased, especially of large caps, which sent their prices down.

The biggest listed companyVinamilk (VNM) gave up 4 percent in value last week while brewer giant Sabeco(SAB) declined 6.4 percent. Two large real estate companies, FLC FarosConstruction (ROS) and VinGroup (VIC), slid 14.2 percent and 2.1 percent.

Bank stocks that gainedsubstantially in the past rallies were also caught in downtrend. Shares of thebig four (four biggest banks by total assets and market value) – Vietcombank(VCB), Vietinbank (CTG), BIDV (BID) and Military Bank (MBB) – decreased bybetween two and four percent.

“We believe there is a strongselling pressure in the market. Besides, lower liquidity, which may come fromthe reduction of margin positions, indicates that investors are less exposed torisk than before,” Quang Vo, a senior analyst at Viet Dragon Securities, wrotein a weekend report.

Predicting the VN-Index couldreturn to an uptrend, Quang Vo advised that investors protect their gains andreduce margin positions until the market shows clear recovery signals.

[Vietnam’s stock mark🍸et sees positive development: Bloomberg]

The HNX-Index on the Hanoi StockExchange also edged down 1.5 percent last week, closing December 8 at 113.81points.

Liquidity weakened with anaverage of 277.4 million shares worth 5.8 trillion VND (254.4 million USD)being traded in the two markets per session, down 12 percent in volume and 20 percentin value compared to the previous week.

Foreign investors concluded asnet sellers last week, offloading 2.8 million shares worth 942.7 billion VND onthe two exchanges. Their net selling was a negative factor, given that theyposted not purchases of 11.3 trillion VND (495.6 million USD) in November.

According to Nguyen Viet Duc, amarket strategist with MB Securities Co, a number of funds and investors beganto realise cash profits towards the end of the year and look for new investmentopportunities. He said it was typical that the market gets dull before theETFs’ portfolio restructuring.

“The market may level off in oneto two weeks and is likely to continue to rise after ETFs finish reviewingtheir portfolios,” Duc said.

Nguyen Van Hanh, a senior brokerat Sai Gon-Hanoi Securities Co, said downward correction was necessary duringan uptrend to consolidate the new price base and reduce market risks.

Hanh said large-cap stocks mayrecover in early trading this week but general trading will likely slow down asinvestors will continue to realise profits and then wait to get a clearer signof the next trend.

He predicted that the VN-Indexwill move in the 930-950 points range this week.-VNA