Shares are forecast to continue their uptrend but the short-term selling pressure is increasing after seven weeks of gaining.
On the Ho Chi Minh Stock Exchange (HoSE), the VN-Index lost 0.49 per cent to close last week at 1,282.57 points.
For the week, the index gained a total 1.06 per cent.
An average of 616 million shares were traded on the southern exchange during each session last week, worth VND15 trillion.
"The market returned to a cautious state on Friday after three gaining sessions, as the high price demand was still cautious in general despite the signal of surpassing the 1,284 points resistance level. Liquidity increased compared to the previous session, showing that the supply pressure is rising when VN-Index is approaching the important resistance level of 1,300 points," said Viet Dragon Securities Co.
"Currently, the area of 1,280 points of VN-Index may have a supportive move for the market and the market will recover to test supply and demand. However, it’s expected that the supply pressure at 1,290 - 1,300 points is still strong.
"Therefore, investors should still be careful and limit buying positions. It’s advisable to consider continuing to restructure the portfolio in the direction of reducing risk, as the pressure from the resistance area on the market is still there.
"The impact of selling pressure is showing more clearly when the VN-Index approaches the resistance zone of 1,300 points. The market is expected to be supported and recover in the short term from 1,280 points of VN-Index and 1,300 points of VN30-Index.
"However, it should be noted that selling pressure will increase when the index continues to enter the resistance zone, due to the continued weakening of demand at high prices. Therefore, investors should still prioritise taking advantage of the upward momentum to restructure their portfolio in the direction of minimising risk. Opening long positions will need to be observed and selected more carefully," the company said.
The strongest gaining sector last week was the consumer services group with an increase of 5.3 per cent in market capitalisation, mainly thanks to the increase of retail stocks, such as Mobile World Group (MWG) up 12.6 per cent, FPT Retail (FRT) up 3.4 per cent, Phu Nhuan Jewelry (PNJ) up 3.3 per cent, and Digital World (DGW) up 3 per cent.
They were followed by chemical stocks such as PetroVietnam Ca Mau Fertiliser JSC (DCM) up 10.8 per cent, PetroVietnam Fertiliser & Chemicals Corp (DPM) up 9.8 per cent, and Lam Thao Fertilisers and Chemicals JSC (LAS) up 7.6 per cent.
The remaining industries increased slightly such as oil and gas, industry, information technology and banking.
Foreign investors turned to be net sellers on both exchanges last week with a net value of VND452.38 billion. In terms of net volume, Kinh Bac Group (KBC) was the stock that was sold the most, reaching 4 million shares. It was followed by SSI Securities Inc (SSI) with 3.7 million shares sold and Hoa Phat Group (HPG) with 3.5 million shares.
On the other side, The PetroVietnam Drilling & Well Service Corporation (PVD) was the stock that was bought the most, reaching 6.4 million shares.
Market liquidity had a direct impact on brokerage revenue, with liquidity recovering, margin lending will be boosted and the business results of securities companies are forecast to grow in the third quarter, said financial news site cafef.vn.
Giving a positive view, ACBS Securities said that the proprietary trading activities of securities companies will become more active in the third quarter of 2022 as the market recovers after the US Fed reduces the scale of interest rate hikes.
Viet Nam's capital market is still in the developing stage and has a lot of potential for growth, notably in the field of consulting on corporate bond issuance, thereby opening up many opportunities for securities companies.
The HNX-Index on the Ha Noi Stock Exchange (HNX) declined 0.78 per cent to close Friday at 299.50 points. It had gained 0.52 per cent last week. An average of 91 million shares were traded on the northern exchange during each session last week, worth VND1.9 trillion. VNS