Analysts from securities companies said that there is still room for the VN-Index to increase this week but the index's gaining momentum will be narrowed.
The market benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) ended last week at 1,456.51 points, up 8.17 points, or 0.56 per cent.
It had gained a total of 0.85 per cent last week.
An average of 1.1 billion shares were traded on the southern exchange during each session last week, worth VND32 trillion (US$1.4 billion).
On the Ha Noi Stock Exchange (HNX), the HNX-Index inched up 5.22 points, or 1.24 per cent, to end last Friday at 427.64 points.
“After VN-Index surpassed 1,400 points, investor sentiment in the past week remained quite positive. However, short-term profit-taking also started to appear, so the index's gaining momentum will somewhat be narrowed,” said Vietcombank Securities Co Ltd (VCBS).
“Technical indicators show that some stocks are in overbought territory, a term that analysts use to refer to stocks that are traded above intrinsic value, which could cause oversupply. The market becomes stronger in the coming sessions,” it said.
VCBS said that investors can still hold a high proportion of stocks in the portfolio, and at the same time need to pay attention to risk management.
According to MB Securities Joint Stock Company (MBS), last week from November 1 to 5, the market went up sustainably in both points and liquidity, the VN-Index continued to maintain the gaining streak as it rose for the second consecutive week last week.
“Notably, the cash flow continuously shifted from real estate stocks to banking, securities, oil and gas stocks, and most likely continued to seaports, building materials, industrial real estate."
“It shows that the profit-taking cash flow has not left the market but is constantly looking for new opportunities, especially in speculative stocks," said MBS.
According to Saigon Securities Joint Stock Company (SHS), market liquidity last week set a new record, showing that the buying demand was significantly strong and the cash flow was still pouring into the market.
“Foreign investors were net selling more than VND2 trillion on the two bourses. However, from a technical point of view, the market is still in an uptrend with the target of around 1,550 points,” it said.
“Therefore, there is still room to increase this week, VN-Index may continue to increase to reach new highs, however, shaking sessions may occur during this progress,” it said.
In the negative scenario, if selling pressure increases, the VN-Index may need to retest the demand around the psychological threshold of 1,450 points, SHS stated.
Most of the major sectors had positive growth last week. Banking stocks gained the most with typical gainers of Military Bank (MBB) up 0.5 per cent, Asia Commercial Bank (ACB) up 1.5 per cent, Techcombank (TCB), rising 2.7 per cent, Vietinbank (CTG) gaining 3.8 per cent, Sacombank (STB) gaining 3.9 per cent, Lien Viet Post Bank (LPB) rising 10.8 per cent and Saigon-Hanoi Bank (SHB) up 12.7 per cent.
They were followed by financial, pharmaceuticals and healthcare stocks
On the other hand, oil and gas group decreased with falling stocks such as Petrovietnam Transportation Corporation (PVT), PetroViet Nam Coating JSC (PVB), Binh Son Refinery (BSR) and PetroVietnam Technical Services Corporation (PVS). — VNS