Analyst underates market, saying hard to find short-term profits
Analysts from securities companies have a bleak outlook on the market trend this week and say that finding short-term profits has become more difficult.
Analysts from securities companies have a bleak outlook on the market trend this week and say that finding short-term profits has become more difficult.
On the Ho Chi Minh Stock Exchange, the VN-Index closed Friday up 0.23 per cent at 1,420.27 points, expanding the weekly gain to 2.17 per cent.
An average of 680.4 million shares were traded on the southern exchange during each session last week, worth VND23.5 trillion (US$1 billion).
Viet Nam's stock market continuously set historic peaks last week, with high liquidity and the strongest net buying value in the first half of the year. This positive development together with the news that HoSE will officially operate a new trading system provided by FPT Securities Joint Stock Company this week supported the market.
However, Tran Xuan Bach, a stock analyst at Bao Viet Securities Co (BVSC), said: “The market is expected to fluctuate in a narrow range with strong divergence between stocks.”
“If the index successfully breaks the resistance zone at 1,405-1,420 points, the market is likely to head to the resistance zone at 1,455-1,480 points in the short term. Q2 business results will continue to manipulate the market in the short term,” he said.
According to Saigon-Hanoi Securities Corporation (SHS), the market had a third consecutive gaining week with a slight increase in liquidity compared to the previous week and approximately the 20-week average, showing that money is still pouring into the market.
“Even so, market breadth was not really good with the number of losers outnumbering advancers in most of the sessions,” SHS said.
“Finding short-term profits is becoming more difficult. From a technical perspective, VN-Index has a strong resistance around 1,420 points,” it said.
SHS recommended that investors continue to monitor transactions this week when HoSE's new system is put into operation so that they can determine the next trend of the market.
An expert from BOS Securities Joint Stock Company (BOS) said: “Technically, VN-Index would continue to increase and surpassed the resistance level of 1,420 points. However, the divergence would increase in the market along with the struggle between buyers and sellers.”
“Most likely, VN-Index will see a struggle and accumulate in the range of 1,420 - 1,430 points in a few sessions. Investors are recommended to prioritise maintaining current portfolios and strengthening risk management.”
According to statistics of SHS, information technology stocks increased the most last week, mainly thanks to the increase of pillars such as FPT Corporation (FPT), up 7.9 per cent, CMC Telecom (CMG), up 6.8 per cent.
The group was followed by consumer services stocks with typical gainers such as Vietjet (VJC), up 4.1 per cent, and Vietnam Airlines Corporation (HVN), up 0.6 per cent.
Banking stocks gained strongly thanks to the pillars of Vietcombank (VCB), rising 2 per cent, Bank for Investment and Development (BID), gaining 3.3 per cent, Techcombank (TCB), increasing 5.2 per cent, VPBank (VPB), up 5.7 per cent and Saigon Hanoi Bank (SHB), up 7 per cent.
Construction materials were boosted by strong gains of large stocks such as Hoa Sen Group (HSG) up 2.7 per cent, Hoa Phat Group (HPG) up 3.2 per cent, PetroVietnam Fertiliser and Chemicals Corp (DPM) up 4.2 per cent and Nam Kim Group (NKG) up 10.7 per cent. — VNS
