Despite two modest declining sessions at mid-week which were regarded as a necessary correction, the VN-Index managed a gain of 3.53 percent on the week to close at 531.51 points.
The average daily value of trades reached nearly VND2.4 trillion (US$125.7 million), an increase of over 48 per cent from the previous week, while volumes also rose by 40 per cent to a daily average of 55 million shares.
On the Ha Noi Stock Exchange, the HNX-Index posted a more modest gain of 1.93 per cent on the week, ending Friday's session at 173.45 points. Average daily trading value stalled at about VND1 trillion ($52.4 million), while average volumes edged up 1.4 per cent to 31.8 million shares.
Shares posted a second straight week of gains on strengthening investor confidence in a glowing economic picture and the bright performance of listed firms, said FPT Securities Company analyst Nguyen Tuan.
"The State Bank of Viet Nam's decision to allow negotiated interest rates for medium- and long-term loans has continued to lift the stock market, enabling commercial banks to increase lending and provide more capital for stock investments," Tuan said.
With daily trades reaching over 50 million shares per day, many analysts agreed that capital was again flowing back into the stock market. In addition to bank resuming lending for securities investment, brokerages were also allowing clients to make leveraged investments.
Nevertheless, the Director of Agribank's HCM City branch, Le Van Minh, suggested that the interest rates on loans made against securities collateral had already risen to an average of 18 per cent per year, so there were few investors taking advantage of this source of capital.
"Our branch's securities lending has reached only VND100 billion ($5.2 million), equal to only about 25 per cent of last year's peak levels," Minh said.
Au Viet Securities Company Deputy Director Nguyen Anh Thi also said that, even though some brokerage companies resumed the practice of financing leverage, not many investors were resorting to this option. The current use of leverage was only about 30 per cent of the previous year's peak.
Thanh Cong Securities Co's Managing Director Nguyen The Nhien suggested that the release of information by listed companies during the past week, regarding dividend payments, additional share issues, major contracts signed and new business targets, had positively affected share prices.
Tuan noted that different sectors of shares had taken turns leading the market during the week, including steel, seafood and real estate and construction shares.
The market closing high on Friday would give impetus to a further advance early this coming week, HCM City Securities Company Managing Director Fiachra Mac Cana predicted in a report.
Overall performance on the week would hinge on the release of new inflation figures next week, said Mac Cana, predicting that, if inflation rose by less than 1 per cent, the State Bank would further ease monetary policy and incite gains on the market.
After two weeks in which they ended up as net sellers, foreign investors concluded last week as net buyers on both bourses of a combined VND342 billion ($18 million) worth of shares. Dairy giant Vinamilk (VNM) was their most sought-after share, with foreign investors now holding some 46 per cent of shares in the company, close to the statutory limit on foreign ownership.