Stock market might not have more room to rise: experts

Monday, May 17, 2021 05:12

The Viet Nam National Petroleum Group (Petrolimex)'s gasoline station. The company shares posted a gain of 8.1 per cent in market capitalisation last week. — Photo

The market hit new highs last week with the liquidity exceeding VND1 billion each session. Analysts from securities firms expect strong and stable investment cash flows will continue to elevate the market this week, but it might not have more room to rise higher.

After a choppy trading week, the market benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) closed the last trading session at 1,266.36 points, up 0.35 per cent. The index broke the record high of nearly 1,270 points last Wednesday.

For the week, the benchmark increased 0.54 per cent.

On the Ha Noi Stock Exchange (HNX), the HNX-Index ended the last session at 294.72 points, up 2.68 per cent. The index posted a significant weekly rise of 5.2 per cent.

According to Saigon - Hanoi Securities JSC (SHS), the VN-Index jumped last week with higher liquidity and was higher than the 20-week average. It showed that cashflow continued to run into the market and investors’ sentiment is positive.

After five weeks of struggling, the VN-Index finally finished the week above 1,250 points. However, foreign investors net sold a value of over VND3.6 trillion last week and this trend is expected to continue this week, barring the market rally.

The securities firm forecasted that the upward trend will continue this week but the room for rising higher is limited. Therefore, the VN-Index might continue to head for the 1,325 point-level. SHS suggested that investors can raise the proportion of short-term positions if the market corrects back to support level of 1,250 points.

Analysts from SSI Securities Corporation (SSI) said that after going up from the support zone of 1,200 points, the benchmark is heading back to the 1,286 point-level hit on April 20. The index is likely to face correction while approaching the resistance level of 1,286 points before falling back.

On the technical front, BOS Securities Corporation said that the VN-Index hasn’t broke the 1,270 point-level in the last trading session as the division between stocks is rising. This showed that the market’s potential supply force is at the resistance territory of 1,268 - 1,275 points.

But BOS still expected that the VN-Index might keep gaining points and move toward the old peak of 1,280 - 1,285 points, boosted by some large-cap stocks and mid-cap stocks in the coming sessions. And it is likely to struggle more during the rally.

Meanwhile, MB Securities JSC (MBS) saw that the country stock market is back to its upward trend thanks to stocks in the VN30 basket, which tracks 30 biggest stocks on HoSE. Both the VN-Index and VN30-Index are at their new highs. On the technical front, the market is still moving around 1,268 - 1,286 points. Therefore, the fluctuations will continue, MBS added.

Last week, the liquidity on both exchanges was at an average of VND24.6 trillion per session. On HoSE, the trading value rose 29.3 per cent week-on-week to over VND110.3 trillion, equivalent to a trading volume of nearly 2.7 million shares, up 20.6 per cent.

On HNX, the trading volume jumped 28.4 per cent to 609 million shares, worth over VND12.8 trillion, up 40.6 per cent.

The gas and oil sector rose the most in market capitalisation last week, up 7.1 per cent. It was followed by the banking sector and consumer goods, up 4.8 per cent and 4 per cent in market capitalisation, respectively. — VNS


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