HANOI: The domestic stock market experienced choppy going last week and finished lower on profit-taking.
The Ho Chi Minh Stock Exchange, the VN-Index closed last week at 1,261.9 points, and the HNX-Index on the Hanoi Stock Exchange (HNX) traded at 241.7 points.
For the week, the former declined 0.9%, while the latter hardly changed.
Liquidity remained on an upward trend, as trading on the whole reached 27.67 trillion dong per session, up 37.6%.
Meanwhile, foreign investors were net sellers, with an outflow of nearly six trillion dong over the week.
Dinh Quang Hinh, head of the macro and market strategy at VNDirect Securities Company, said that short-term risks were on the rise as the market grapples with uncertainty – domestic and international.
Expectations for a US Federal Reserve rate cut in September have dimmed to 51% compared to the previous week’s 68%.
This development triggered a significant market correction for US stock indices on the fifth day.
Despite intervention efforts by the State Bank of Vietnam, exchange rate pressures in the domestic market have yet to ease.
Hinh said the interbank overnight interest rates surpassed the 5% threshold.
During trading sessions on May 22 and 23, several commercial banks sought liquidity support from the central bank through high-volume tenders on the open market operation (OMO) channel.
SBV also raised the OMO interest rate to 4.5% a year, a 25-basis-point increase.
The information immediately impacted the stock market, which is considered a sensitive channel to interest rates, according to the expert from VNDirect. — Viet Nam News/ANN