Vietnamese shares started the week on a negative note amid falling liquidity as large-caps suffered strong selling pressure.

The negative factors that affected the stock market are in the rear-view mirror or getting there, and the prospects of higher stock prices in the months ahead are supported by rebounding earnings growth, a recovering economy and cheap valuations, according to Michael Kokalari, chief economist at VinaCapital.

Improved cash flow and positive sentiment are expected to drive market trends this week, as cooling domestic exchange rate boosts investor confidence.

Vietnamese shares struggled on Friday as large-caps stocks simultaneously dropped, putting negative pressure on the market.

The launch of the KRX system by the end of this year is expected to significantly increase capital flows to the stock market, experts said.

The State Securities Commission of Vietnam (SSC) has imposed an administrative fine of VND1.5 billion (US$61,640) on Nguyen Huu Duc, a native of central Da Nang City for manipulating the local stock market.

Shares continued their growth on Thursday but were restrained by slumps of many large companies.

Shares rebounded strongly on Wednesday with numerous steel, real estate and securities stocks hitting the ceiling prices.