Investors make transactions at SSI Securities Co's trading floor. SSI rose 3.2 per cent last week.— Photo courtesy of SSI
High liquidity and outperforming sectors last week made analysts optimistic about the market trend this week, saying that the uptrend will continue.
The benchmark VN-Index on the Ho Chi Minh Stock Exchange gained 0.97 per cent to end Friday's session at 1,167.69 points.
The index had gained 5.8 per cent last week.
An average of 778 million shares were traded on the southern stock exchange, worth VND17 trillion (US$736 million).
According to MB Securities Joint Stock Company (MBS), the strong cash flow is still entering the market. Many investors are paying more attention to the market, the macroeconomic prospect is still the driving force for disbursement among domestic and foreign investors.
“Technically, the VN-Index has convincingly surpassed 1,100 points. Therefore it's clear that the market is in a long-term uptrend. In the short term, VN-Index is approaching 1,200 points,” MBS said.
“Despite suffering profit-taking pressure in the last session of last week, the VN-Index quickly rebounded and stood stable,” said experts from Rong Viet Securities Joint Stock Company (VDSC).
"The market is still in an uptrend despite experiencing fluctuations,” the company said.
The market is heading toward a strong resistance zone 1,180-1,200 points, according to Bao Viet Securities Co.
“Volatility and correction pressure will rise at this zone, especially when various stock sectors have become overbought,” it said.
“Large-cap stocks will continue to increase and support the index. Cash flow still shows interest in small- and medium-cap stocks for profit-seeking.
“Sectors such as real estate, securities, banking, steel are expected to achieve positive Q4 business results. Stock sectors will gradually experience a wide divergence based on Q4 and 2020 business results of listed firms.
“The stock exposure should be maintained at 40 per cent-50 per cent of the total investment, prioritising medium- and long-term positions.
“Investors with high stock exposure should consider lowering stocks proportion of short-term positions when the market approaches the resistance zone we mentioned,” it said.
According to Saigon-Hanoi Securities Joint Stock Company (SHS), unstable trading may occur more often when investors decide to take profits as the VN-Index is gradually approaching 1,211 points - the peak of April 2018.
Last week, liquidity on both exchanges, HoSE and HNX, continued to increase and set a new record with a value of more than VND19.2 trillion per session on the two exchanges.
For the whole week, trading value on HOSE increased 59.9 per cent to VND85.2 trillion, corresponding to a rise of 49 per cent in trading volume.
Trading value on the HNX increased 51.1 per cent to VND10.9 trillion, corresponding to a 31.1 per cent increase in trading volume.
Banking stocks rose the most last week, with Bank for Investment and Development of Vietnam (BID) increasing by 1.3 per cent, Vietcombank (VCB) rising 7 per cent, Asia Commercial Bank (ACB) climbing by 7.5 per cent. VPBank (VPB) growing by 9.4 per cent, Vietinbank (CTG) increasing by 12 per cent, Saigon-Hanoi bank (SHB) gaining by 12.4 per cent, Techcombank (TCB) rising by 13.3 per cent, Military Bank (MBB) gaining by 15.7 per cent.
The banking group was followed by the information technology group with notable representatives of CMC Corporation (CMG), rising by 0.3 per cent, and FPT Corporation (FPT), up by 7.1 per cent.
Stocks in the real estate and securities industries also were driving forces of the general market, such as Vingroup (VIC), increasing 3.3 per cent, Vinhomes (VHM), gaining 7.7 per cent, Novaland (NVL), rising 14.7 per cent, SSI Securities Inc (SSI), increasing by 3.2 per cent, Ho Chi Minh City Securities Corporation (HCM) and Viet Capital Inc (VCI) both rising by 3.8 per cent, Saigon-Hanoi Securities Co (SHS) up by 6.8 per cent.
Oil and gas stocks maintained their optimism last week with PetroVietnam Gas JSC (GAS) advancing 7.05 per cent, PetroVietnam Technical Services Corporation (PVS) increasing 15.3 per cent, The PetroVietnam Drilling & Well Service Corporation (PVD) rising 21.36 per cent, PetroVietnam Coating Corporation (PVB) increasing 8.39 per cent, PetroVietnam Construction Corporation (PVC) gaining 11 per cent, PetroVietnam Oil Corporation (OIL) increasing 4.13 per cent.
The food and beverage industry was also quite active. Vinamilk (VNM), Masan Group (MSN), Kido Group (KDC) and GTNFoods JSC (GTN) all rallied.
Foreign investors net sold nearly VND349 billion on both exchanges. They net sold nearly VND277 billion on HOSE and net sold more than VND72 billion on HNX. — VNS