On the HCM City Stock Exchange, the VN-Index gained 1.37 per cent over the previous week's close to end the session last Friday at 511.18. Trading volumes increased by over 22 per cent to 45.5 million shares, worth an average of over VND1.4 trillion (US$76.6 million) per day.

Ocean Group (OGC) was the most-active share on the southern exchange with a daily volume of 2.2 million shares.

On the Ha Noi Stock Exchange, the HNX-Index rose by 3.24 per cent, ending the week at 163.35 points. Trading values increased 53 per cent to reach an average of VND1.3 trillion ($69.4 million) per day on an average volume of 41.2 million shares.

PetroVietnam Construction (PVX) was the most heavily-traded share on the Ha Noi bourse, accounting for nearly 13 per cent of the northern market's total volume last week with an average of 5.3 million shares changing hands daily.

The global economic situation showed signs of improvement as the US consumer confidence index rose to a two-year high and Spain successfully sold government bonds. China and Singapore also both committed to act to prevent the growing bubble on their property markets.

The local economy also got a boost from a favourable appraisal by the World Bank and prospects for low inflation figures in June, as well as positive second-quarter earnings results by listed firms.

June inflation data and a decision on the prime rate for the month of July were expected this week.

"The local market rallied thanks to the collective impacts of the recovery on both global and local stock exchanges, supported by economic data," said said FPT Securities Co analyst Nguyen Van Quy.

Quy said if the world markets sustained stability, the local stock market would turn back to a rally period, triggered by good performance results of listed firms.

"The market is being supported by listed companies' earnings results, additional shares issues, new strategic investors and new projects," agreed Fiachra Mac Cana, managing director of HCM City Securities Co's research department.

Second-quarter results would likely improve on the first quarter, and market prospects looked positive this week despite the unstable investor psychology in recent weeks, he said. "We are still confident in the market."

Foreign investors concluded last week as net sellers on both national stock exchanges, however, responsible for a net sale of over 3.6 million shares. Although they remained net buyers by value in HCM City of VND187 billion ($9.9 million) worth of shares, the figure represented a decline of 23 per cent from the previous week.