Shares witnessed a choppy week as the market benchmark opened the new year on a positive note, but ended lower on the last trading day of the week. However, experts believe the uptrend remains, while cash flows will continue to pour into small- and medium-cap stocks in the near future.
On the Ho Chi Minh Stock Exchange (HoSE), the VN-Index closed the last trading session at 1,528.48 points after hitting an all-time high at 1,528.57 points. Meanwhile, the HNX-Index on the Ha Noi Stock Exchange (HNX) finished last week at 493.84 points.
For the week, the VN-Index rose over 2 per cent, and the HNX-Index increased by 4.2 per cent.
The market liquidity decreased compared to the previous week. But because there were only four trading sessions, the average trading liquidity per session improved with about VND36 trillion (US$1.6 billion) per session on the two main exchanges.
MB Securities JSC (MBS) said that after breaching the historical peak in the opening session of the new year, the market fluctuated slightly around the 1,530-point level in the following three sessions.
The trio stocks of the Vin family and bank stocks still weighed on market sentiment. Therefore, cash flows shifted to small- and medium-cap stocks. Both of the stock groups increased strongly, especially the mid-cap stocks.
MBS believes that the market's uptrend remains despite pressure from blue-chips, with the liquidity being at a high level while the market trades in a tight range.
Cash flows basically continue to pour into small- and medium-cap stocks in the short-term, the securities firm added. Besides, there was a shift to blue-chip stocks, mostly to bank stocks for a longer-term strategy.
BOS Securities Corporation (BOS) said that in the last trading session, stocks with an uptrend were mainly in industries that are expected to benefit from public investment such as real estate and construction materials.
Technically, the benchmark VN-Index has not yet escaped the resistance of the rising wedge pattern. The uptrend is supported by the moving average (MA), the relative strength index (RSI), the moving average convergence divergence (MACD), and the money flow index (MFI).
Thus, the VN-Index will continue the uptrend in the short term. Investors can consider taking profits in stocks that have reached expected profits and transfer capital to stocks that are expected to have positive business results in the fourth quarter of 2021, or stocks of which prices haven’t increased sharply, BOS recommended.
Meanwhile, Saigon-Hanoi Securities JSC (SHS) said that the success of breaking the psychological resistance level of 1,500 points helps the VN-Index to move toward the next target of 1,530-1,550 points.
The index reached the target level for three consecutive sessions, but failed to keep it. Therefore, the benchmark may continue to gain points to test the resistance area.
Last week, most stock groups witnessed growth, with utilities stocks posting the biggest rise of 8.7 per cent in capitalisation thanks to outstanding stocks like PV Gas (GAS) and PV Power (POW).
Industrial stocks also saw a big gain of 7.3 per cent, followed by real estate stocks like Development Investment Construction JSC (DIG) and Vincom Retail (VRE).
Oil stocks also posted positive performance, up 4.3 per cent in market capitalisation, boosted by higher global oil prices. In the international market, the Brent crude price hit over $80 per barrel on uncertainties in Kazakhstan and outages in Libya, with both being members of OPEC. — VNS