The Vietnam Stock Index or VN-Index, a capitalization-weighted index of all the companies listed on the Ho Chi Minh City Stock Exchange, declined this week due to investors' caution.

After surpassing the 790-point threshold last week, the index declined to the 760-point threshold this week.

According to local stock experts, this was because investors were cautious and disappointed about the implementation of a bad debt resolution recently approved by the country's top legislature, as well as information about potential raising the value-added tax (VAT) by the Ministry of Finance.

As a result, many stocks in the field of finance, securities, electricity, oil and gas dipped to weigh the index down.

However, large-cap stocks of steel, pharmacy, construction and real estate, and fertility supported the uptrend for the bourse. They were steelmakers Hoa Phat Group (HPG) and Hoa Sen Group (HSG), DHG Pharmaceutical (DHG), Kinh Bac City Development (KBC), FLC Faros Construction (ROS), HCM Infrastructure Investment (CII), and PetroVietnam Fertilizer and Chemicals (DPM).

The index closed at closed at 768.97 points on Friday, up 1.38 points, or 0.18 percent. From the previous week's closing session, the index lost 3.11 points, or 0.4 percent.

During the week, the index experienced three ups and two downs, posting the highest level of 776.17 points on Monday, and the lowest level of 767.59 points on Thursday. In comparison, it ranged between 772.08 points and 792.98 points in the previous week.

About 196.320 million shares worth 3.331 trillion Vietnamese dong (VND) (148.4 million U.S. dollars) changed hands on the Ho Chi Minh City Stock Exchange on Friday, a decrease of 21.39 percent in volume and 70.97 percent in value against Thursday.

Over 942.49 million shares worth 18.659 trillion Vietnamese dong (827.51 million U.S. dollars) were traded on the bourse this week, a decrease of 18.76 percent and 8.18 percent, respectively, against last week.

Foreign investors ended as net sellers this week. On Friday, they bought over 5.481 million shares but sold more than 7.566 million shares.

The index may recover in the next trading week, predicted local securities companies.