Hoa Phat Iron and Steel Production Complex in Hai Duong Province. — Photo hoaphat.com.vn
Shares continued to gain last week despite a net sell value of VND2.2 trillion (US$94.4 million) from foreign investors, but the fluctuations during the week made analysts more cautious about the market going forward.
On the Ho Chi Minh Stock Exchange (HoSE), the VN-Index advanced for four sessions and declined once on Wednesday. The index ended the week at 1,194.2 points, up 2.3 per cent compared to the week before, marking the 11th straight week of growth since last year.
The index ended its eight-day rally on Wednesday, losing ground after hitting a historic peak of 1,200 points in the early session.
But the benchmark returned to its upward trend in the final two sessions of the week.
While at the beginning of the week analysts were confident the index would soon reach a record level of 1,200 -1,220 points, after the adjustment on Wednesday they became more cautious.
"The VN-Index will continue to struggle while trying to test the resistance zone of 1,200-1,220 points. The benchmark is receiving support from the 1,175-1,180 points zone. If we lose this support zone, the market's risk of adjustment is higher in the short-term," said Tran Xuan Bach, a stock analyst at Bao Viet Securities Co.
Investors will pay more attention to fourth-quarter results. Also, this week, the HoSE will release a result of portfolios changing of indexes, including the VN30-Index and VNFINLEAD Index, for the first time of 2021, Bach added.
Analysts from Saigon-Hanoi Securities Joint Stock Company (SHS) expected the benchmark on the southern market is at the end of its upward trend and needs to decrease before surging back.
"If the index can not bounce back to surpass the resistance zone of 1,200- 1,211 points but continues to fluctuate and even decline next week, then this scenario is right," SHS added.
The VN30-Index climbed 1.13 per cent to end Friday's session at 1,182.2 points. The large-caps drove the market's growth.
Banking, securities, real estate, information technology (IT), utilities, materials and production sectors posted good performance last week.
Materials stock rose the most with Song Hong Joint Stock Corporation (SHG) up 5 per cent and Hoa Phat Group Joint Stock Company (HPG) up 4.1 per cent.
The materials group was followed by the IT group with notable representatives of FPT Corporation (FPT) increasing by 5.2 per cent and CMC Corporation (CMG) rising by 1.3 per cent.
On Ha Noi Stock Exchange, the HNX-Index increased by 1.44 per cent to 225.47 points.
Last week, liquidity on both exchanges, HoSE and HNX, continued to increase and set a new record with a value of more than VND20.2 trillion per session on the two exchanges.
Meanwhile, foreign investors net sold 26.4 million shares during the week, with a net sell value of nearly VND2.2 trillion. — VNS