HÀ NỘI — The Vietnamese stock market is forecast to maintain an upward trend this week on upbeat investor sentiment, after seven consecutive gaining weeks of the market with increased liquidity.
Việt Nam’s benchmark VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) increased 1.49 per cent to close Friday at 1,067.46 points.
The index had gained 2.06 per cent last week.
An average of 628.4 million shares were traded on the southern exchange during each session last week, worth VNĐ13.2 trillion (US$571 million).
Trần Xuân Bách, a stock analyst at Bảo Việt Securities Co (BVSC), said the market would possibly face correction pressure during early sessions before rebounding toward this weekend.
“The index maintains a positive uptrend with a target price of 1,100 - 1,110 points. However, various stocks have become overbought, which may lead to strong volatility and correction pressure to the index,” he said.
“The cash flow tends to shift among stock sectors seeking profits. Small and mid-cap stocks are likely to flourish in the next few sessions.
“The stock exposure should be maintained at 50 per cent - 70 per cent of the total investment. Investors should hold stocks in the portfolio and consider lowering short-term positions during the exciting rally market from the beginning of the session or at the market’s resistance zone 1,100 - 1,110 points.”
According to Việt Dragon Securities Co, VN-Index returned to increase on Friday despite risky signs in the previous session, showing that money flow is actively supporting the market.
“VN-index closed at the highest level in the last four sessions, positively helping the market widen its current gaining span. However, there will be a strong struggle at 1070 points.
“Therefore, investors can keep potential stocks, but also need to narrow portfolio with signs of recession. In addition, investors should look for short-term opportunities at some stocks with good accumulation and gaining signals,” the company said.
The analyst group from MB Securities Joint Stock Company - MBS said that in the last session of the week, the liquidity remained at a high level, showing that investors expect the continued recovery of the market in the coming days. Foreign investors' trade took place positively when they net bought again with a total value of nearly 65 billion dong. In the next sessions, VN - Index might retest the resistance level of 1,085 points.
According to Saigon-Hanoi Securities Joint Stock Company (SHS), the majority of stock sectors witnessed growth last week.
Construction material stocks increased the most thanks to Nam Kim Group (NKG) rising 5.2 per cent, Hoa Sen Group (HSG) increasing 5.1 per cent, Tây Ninh Rubber JSC (TRC) gaining 3.7 per cent, Phước Hoà Rubber Co (PHR) up 3.1 per cent and Đà Nẵng Rubber Co (DPR) going up 1 per cent.
They were followed by the banking group with notable gainers of Techcombank (TCB), up 13.8 per cent, VPBank (VPB), up 11.8 per cent, Military Bank (MBB), rising 7.4 per cent, Vietcombank (VCB) increasing 1.7 per cent and Vietinbank (CTG) climbing 1 per cent.
Lê Hoàng Phương, an expert of macro and market strategy of Bảo Việt Securities Joint Stock Company said last week, the stocks that have the most positive influence on the VN-Index were Vietnam Rubber Group - Joint Stock Company (GVR), Techcombank (TCB) and VPBank (VPB).
On the contrary, the stocks that have the most negative influence on the index last week were Vingroup (VIC), Vinamilk (VNM) and PetroVietnam Gas JSC (GAS).
“Việt Nam's stock market last week had positive developments in the context that many stock markets around the world, especially the US market, were on the rise thanks to optimism about progress in negotiations over US economic stimulus package,” he said. — VNS
