Hanoi (VNA) –Vietnam’s benchmark VN-Index reached a 10-year high last week on the back of afew blue chips. However, the gain was unstable and the index could face ashort-term drop in the coming sessions.

On September 8, the VN-Index on the HCM Stock Exchange gained 0.56 percent toclose at 801.20 points after a seven-day rally. The rally helped thebenchmark index record a weekly gain of 1.6 percent and exceed the 800 pointsrecorded in 2007.

On the Hanoi Stock Exchange, the HNX-Index was down 0.66 percent to finish thepast trading week at 103.92 points. The northern market index put a dentin its three-day upward run of 0.8 percent, and concluded the week up only 0.1percent from the previous week.

An average of nearly 192 million shares was traded in each session last week,worth 3.95 trillion VND (175.4 million USD). The trading figures were down28 percent in volume and 13.5 percent in value compared to the previous tradingweek’s numbers.

The stock market gain was achieved due several large-cap stocks that performedquite well in all four trading days of the week after the market returned froma national holiday.

Those gainers included brewer Sabeco (SAB), FLC Faros Construction (ROS), foodand beverage producer Masan Group (MSN) and PetroVietnam Gas (GAS).

SAB surged 10.7 percent, ROS rose 5.6 percent, MSN soared 10.4 percent and GASincreased by 6 percent during the week.

However, the rest of the market was quite sluggish on high investorcaution. Sectors that were expected to boost the market such as banks,brokerages and insurance-finance firms underperformed.

Though the VN-Index kept hitting new highs, the trading condition was dominatedby declining stocks rather than gaining ones, generating investor hestitationto buy new local assets.

Foreign investors finished as net sellers last week. They posted 74 billion VNDin net sell value on the two local exchanges – contrary to the net buy value of237.7 billion VND.

According to analysts, the gain of the stock market last week was not stableand the market could face a short-term declining period to accumulate andprepare for further increases.

The stock market was driven up by only a few blue chips, while a number ofmid-cap stocks had fallen to make gains and returned to their low pricelevels, Nguyen Ngoc Lan, head of brokerage at Agribank Securities Company,said.

“That shows the market needs some time to settle down and accumulate at thecurrent level to increase more strongly in the future,” she said. “In the fewcoming weeks, large-cap stocks will take turns to lift the market up and lureinvestors back to the market.”

Bao Viet Securities Company (BVSC) was even more pessimistic about the market’sshort-term prospects. “Investors will increase their selling this week andfocus to gain profits from mid-cap and small-cap stocks while large-cap stockswill continue performing in negative directions,” it said.

According to BIDV Securities Company (BSC), poor investor confidence resultedin low trading liquidity last week and therefore, the brokerage firm expectedthe VN-Index would fall in the coming week.-VNA