The VN-Index underwent a positive trading week with modest gains in four of five sessions last week, and is expected to keep its upward trend momentum thanks to the support of some prominent bluechips.
The VN-Index on the HCM Stock Exchange advanced 0.64 per cent to close at 1,174.46 points on Friday.
The index had the 7th consecutive gaining month and week. In total, it gained 1.9 per cent last week and 4.6 per cent in March. During the first quarter of 2018, the index gained 19 per cent after increasing strongly 22 per cent in the fourth quarter of 2017.
According to Bao Viet Securities (BVSC), the index will likely retest the score around 1,178 next week. In a positive scenario, the index could approach the new high range at 1,220-1,250 in the short-term.
“However, we still open a possibility that the index will move sideways at below the score 1,178 in some sessions before moving up,” BVSC said in its Friday report.
The minor HNX Index on the Ha Noi Stock Exchange increased 0.44 per cent to end at 132.46 points on Friday. The northern market index scored a weekly rise of 0.4 per cent.
On average, more than 272 million shares were traded on Vietnamese stock market last week, worth VND7.84 trillion (US$344.3 million).
The trading figures last week were down 14.1 per cent in trading volume and 7 per cent in value compared to the previous week.
According to BVSC, liquidity reduced day-on-day and week-on-week but increased significantly month-on-month.
“Cash flows mostly ran into large-cap and real estate stocks while bank stocks experienced some corrections. This trend will likely continue next week,” it said.
Among Vietnamese real estate stocks, Vingroup (VIC) gained over 50 per cent since the beginning of the year. Meanwhile, the figures for No Va Land Investment Group Corporation (NVL) and Dat Xanh Real Estate Service & Construction Corporation (DXG) were 40 per cent and 69 per cent.
According to market strategy expert Ngo Quoc Hung at Vietinbank Securities Company, large-cap stocks of big listed companies like property developer Vingroup (VIC), budget carrier Vietjet (VJC) and Masan Group (MSN) will still be the main drivers of the market and directly affecting the indexes.
Viet Nam’s upbeat economic results in the first quarter as well as bright prospects for the whole year 2018 will also continue to be a major supporting factor for the local stock markets in the medium term.
“Investor confidence was supported by a positive GDP growth recorded in the first quarter of the year, which was seen at 7.38 per cent. They should consider investment in stocks with good fundamentals and high expectations like banking, securities and real estate, which are expected to bring about large profits thanks to the positive economic growth,” Hung told tinhanhchungkhoan.vn.
According to Hung, March and April are the peak periods for shareholders’ meeting season.
Listed companies’ Q1 earnings announcements, dividend payment plans and 2018 business plans will be announced and become short-term supporting information for investors, greatly influencing the market performance, Hung said.
“This will be a necessary time for investors to review the business prospects of enterprises in the first quarter as well as in 2018,” Hung added.
Investors also reacted positively to the consumer price index (CPI) data.
The consumer price index (CPI) in 2018 is predicted to rise by 3.41 per cent, 3.55 per cent and 3.9 per cent under three scenarios, which were recently forecast by the Government’s Steering Committee on Price Management.
All the predicted figures are below the benchmark of 4 per cent set by the National Assembly. — VNS