Market to rally despite early corrections

Monday, May 24, 2021 07:06

A motorist buys fuel at a Petrolimex (PLX) station in Ha Noi. PLX rose 4.7 per cent last week. — VNA/VNS Photo

Experts from securities companies said although the market may experience corrections early this week, it will soon return to an uptrend thereafter.

The market benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) rose 0.45 per cent to close Friday at 1,283.93 points.

It had gained 1.39 per cent last week.

More than 717.8 million shares were traded on the southern market last week during each session, worth VND22.3 trillion (US$964.4 million).

According to SSI Securities Joint Stock Company, after recovering from 1,250 points, the VN-Index was approaching the nearest peak at 1,286 points.

“It is likely that the index will see a slight correction when testing this resistance area before returning to the uptrend towards 1,350 - 1,400 points,” SSI said.

MB Securities Joint Stock Company (MBS) said in general, the market had favourable conditions to go up to higher thresholds. However, the market was still facing difficulties due to system overloads.

BOS Securities Joint Stock Company said technically the VN-Index had surpassed 1,280 points with the support of strong cash flow.

However, the increasing divergence in the market and the adjustment pressure in blue-chips might affect the market in the coming sessions.

Most likely, the VN-Index would maintain the uptrend and move towards the resistance level of 1,300 points in the short term.

Regarding the movements of stocks, most of the stock groups increased last week. Information technology stocks increased the most, mainly due to the increase of pillar FPT Corporation (FPT), up 10.6 per cent.

It was followed by the oil and gas group, mainly thanks to the momentum of the pillars in the group, including Viet Nam National Petroleum Group (PLX), up 4.7 per cent.

Bank stocks also gained strongly last week, with notable gainers of Bank of Investment and Development of Vietnam (BID), up 5.7 per cent, Military Bank (MBB), up 5 per cent, Techcombank (TCB), up 4.4 per cent, Asia Commercial Bank (ACB), up 2.9 per cent, Vietinbank (CTG), up 2.7 per cent, VPBank (VPB), up 1.8 per cent, Saigon-Hanoi Bank (SHB), up 1.7 per cent.

The construction materials group rose with Hoa Phat Group (HPG) rising 6.8 per cent and Hoa Sen Group (HSG) climbing 3 per cent.

According to Saigon-Hanoi Securities Co (SHS), the market was witnessing large divergence between stocks with only a few gaining compared to many others falling or moving sideways, making it difficult to earn profits at this time.

“When the cash flow decides to withdraw, it is likely that the market will correct sharply like what happened in April 2018,” SHS said.

“It is obvious that the Vietnamese stock market has reached a historic peak thanks to internal supportive elements, one of which being strong domestic cash flow,’ it said.

Meanwhile, on the Ha Noi Stock Exchange (HNX), the HNX-Index gained 0.98 per cent to close Friday at 297.99 points.

It had gained 1.1 per cent last week.

An average of 144.2 million shares were traded on the northern market during each session last week, worth VND3.1 trillion. — VNS

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