VN-Index expected to soar this week

Monday, Jun 13, 2016 10:20

Experts from most securities companies expect the VN-Index to hit a two-year peak level of 640 this week. — Photo

HA NOI (Biz Hub) — Experts from most securities companies expect the VN-Index to hit a two-year peak level of 640 this week.

Nguyen The Minh, in charge of market analysis at Ban Viet Securities Company (VCSC), said investor confidence has helped the VN-Index soar to its highest level of the year so far. Ending Friday, the index closed at 629.84, up 1.3 per cent compared with the previous week.

Notably, in the June 9 session, the VN-Index climbed to 631.26 point, its highest level in 2016.

Nguyen Hong Khanh, Head of Analysis at SBS Securities said last week's results were better thanks to positive news coming from the industries of oil, construction and steel throughout the week.

The crude oil price reached over US$50 per barrel in the middle of the week, its highest in three months, leading to an early rally in local oil and gas stocks including PetroVietnam Gas Corp (GAS), PetroVietnam Drilling and Well Service Corp (PVD), PetroVietnam Technical Services Corp (PVS) and PetroVietnam Coating Corp (PVB).

Meanwhile, two steel producers that benefited from the zero per cent tax from the US market, Hoa Phat Group (HPG) and Hoa Sen Group (HSG), rose sharply.

The revision of State Bank of Viet Nam's Circular No 36 which reduced the tight credit for the realty market helped many realty stocks grow.

While most realty stocks rose lightly, An Duong Thao Dien JSC (HAR) grew about 10 per cent over the previous week.

To conclude all the positive signals, Khanh said the results were not only boosting local investors' confidence, but also made foreign investors increase their net buying.

Foreign investors were net buyers of VND411billion, contributing significantly to the market boom.

Of which, the southern bourse of HCM Stock Exchange (HoSE) accounted for VND375.63 billion. Stocks of Military Commercial Bank (MBB) were foreigners' best buy last week with the buying value of VND142.4 billion. Currently, foreign buyers have bought the maximum 20 per cent for foreigners in the bank.

On the northern bourse of Ha Noi Stock Exchange (HNX), foreign investors were net buyers in four out of five trading days last week with a total value of VND35.74 billion, which contributed to help HNX-Index up 84.85 points, the highest level of the year so far.

Topping the list of foreign investors' net buying on HNX were PetroVietnam Technical Services Corporation (PVS), then Viglacera Ha Long JSC(VHL), Sao Vang Rubber Joint Stock Company (SCR) Da Nang Airports Services Joint Stock Company (MAS) and Petrolimex Petrochemical Corporation - JSC (PLC).

In further forecasts, VCSC's Nguyen The Minh thought that cash flow was back to mid-caps and small-caps stocks as these stocks had not yet reached the best potential so investors could look for more profit opportunities on them, especially real estate stocks actively benefiting from the revision of Circular No 36 of the State Bank.

According to financial website, ten of the most attractive stocks in the market this week will include Viet Nam Joint Stock Commercial Bank for Industry and Trade (CTG), F.I.T Investment Joint Stock Company ( FIT), HAR, Hoa Phat Group Joint Stock Company ( HPG), Ba Ria-Vung Tau House Development JSC (HDC),Tu liem Urban Development Joint-Stock Company (NTL), Son Ha Sai Gon Joint Stock Company (SHA), Truong Thanh Furniture Corporation (TTF), Thang Long Investment Group JSC (TIG) and Vingroup Joint Stock Company (VIC).

The website chose the stocks under careful technical analysis of trading and liquidity transactions and experienced recommendations from securities experts. — VNS

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