Shares set to gain on corporate earning hopes

Monday, Jun 22, 2020 06:41

Vincom Plaza Tuy Hoa shopping mall in the southern province of Phu Yen. Stocks of the 'Vin' family were the main driving force helping the market rebound last week. — Photo courtesy of Vingroup

The Vietnamese market is forecast to enter a new rising phase with investors waiting for positive second-quarter earnings reports, said brokerages.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange gained 1.55 per cent to end Friday at 868.56 points.

The southern market index gained 0.58 per cent last week.

An average of 439 million shares were traded on the southern market during each session last week, worth VND8.6 trillion (US$370 million).

According to analysts from MBS Securities JSC, short-term correcting pressures have passed and caused no significant disturbance.

“With the pessimism gone, the market is set to enter a new rising phase and stocks with positive Q2 business results will attract cash flow,” MBS said.

BIDV Securities Co (BSC) said in its daily report that the ETF restructuring process had been completed amid rising liquidity and good market breadth, indicating a positive trading trend next week.

Viet Dragon Securities (VDSC) said after an accumulation period with low liquidity, the VN-Index had rebounded significantly in Friday's trading session.

VDSC recommended that investors consider disbursing as the market corrects slightly next week to increase profits in their portfolios.

Agribank Securities JSC kept a prudent view that the market would fluctuate in the range of 830 - 870 points, continuing the sideways trend, moving in a stable range and will not form a specific trend for a long time.

The market recovered slightly last week amid mounting fears that the second wave of the COVID-19 pandemic was approaching some countries. However, stimulus measures from the US Federal Reserve have helped soothe global market sentiment, said Sai Gon-Ha Noi Securities Co.

“The market is forecast to fluctuate with a wide divergence among sectors next week, between 840-845 and 883-888 points,” said Bao Viet Securities Co.

“The index may possibly face correction pressure during early sessions of this week before recovering toward resistance 883-888 points. However, please note that the market could enter a strong decline if breaking down 840-845 points,” the company said.

Foreign investors net bought nearly VND14.7 trillion on the stock market, much higher than VND422 billion in the previous week.

Stocks of the 'Vin' family were the main driving force for the rebound last week with Vingroup (VIC) up 6.1 per cent, Vincom Retail (VRE ) rising 7.4 per cent and Vinhomes (VHM) gaining 2.5 per cent.

Steel stocks also performed well with Hoa Phat Group (HPG) increasing 3.2 per cent and Hoa Sen Group (HSG) gaining 8.2 per cent.

On the downside, pillar stocks in the food and beverage group dropped the most, with Vinamilk (VNM) losing 2.5 per cent, Masan Group (MSN) declining 2.6 per cent and Sabeco (SAB) dropping 3.3 per cent.

Aviation stocks also fell with budget carrier Vietjet (VJC) decreasing by 3 per cent and national flag carrier Vietnam Airlines (HVN) losing 1.6 per cent.

Stocks of the oil and gas industry had mixed results with the Viet Nam National Petroleum Group (PLX) increasing by 1.9 per cent, PetroVietnam Technical Services Corporation (PVS) up 1.1 per cent, PetroVietnam GAS JSC (GAS) losing 2.7 per cent, PetroVietnam Construction Corporation (PVC) declining 6.2 per cent and PVPower (POW) decreasing by 0.8 per cent. — VNS

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