Brokerage firms forecast a turbulent trading week for Vietnamese stocks this week with the market witnessing wide divergence among groups of stocks and may experience some alternate volatility and corrections while moving up.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) gained 0.24 per cent to close Friday at 989.26 points. It rose a total 0.86 per cent on a weekly basis.

On the northern Ha Noi Stock Exchange (HNX), the HNX-Index finished last week at 107.87 points, adding 0.42 per cent. It climbed total 0.41 per cent from the previous week.

Average trading volume on HoSE reached nearly 199.2 million shares in each session, up 45 per cent week on week. The figure for HNX was 31.3 million shares, up 6.5 per cent weekly.

Bao Viet Securities Company (BVSC) said in its weekly report that the market was forecast to increase slightly with alternative ups and downs in a narrow range.

“VN-Indexs uptrend will be re-tested by the 991-998 and 1,014-1,024 resistance zones with correction pressure. Adversely, 965-970 will actively support the market. Falling through this zone, the market may decrease to 945-955 in the short run,” BVSC said.

The market would continuously diverge among stocks corresponding to the results of Q1 performance and 2019 business plans of each particular enterprise, the company added.

Notably last week, Chinese Vice Premier Liu He led a delegation to Washington to meet with US officials for another round of negotiations on the trade war.

According to Reuters, US and Chinese negotiators concluded their latest round of trade talks on Friday and are expected to continue discussions this week to try to reach a treaty that will end tensions that have shaken global markets.

According to Xinhua News Agency, after the meeting a new consensus has been reached between the countries. Reacting to this news, most Asian stock markets rallied on Friday.

Apart from Hong Kongs Hang Seng Index, many major Asian stock markets gained. Japans Nikkei 225 Index increased by 0.38 per cent, closing at 21,807.50. South Koreas KOSPI index rose 0.14 per cent, closing at 2,209.61. Chinas Shanghai Composite Index and Shenzen Component Index rose by 0.94 per cent and 0.73 per cent, closing at 3,246.57 and 10,415.80, respectively.

This news has also has positive impact on Vietnamese market sentiment as the VN-Index increased by 0.24 per cent, closing Friday at 989.26 points.

According to BVSC, “if China and the USA can reach a deal, the global market will react positively and gain more momentum. On the other hand, if there is no deal, then the global markets will react quite negatively and may possibly slump.”

The company also forecast that capital flows would shift between stock groups to seek profit. Potential sectors, including information technology, textiles, fisheries, rubber, oil and gas, and several real estate stocks would improve and attract capital flows in the short run.

“The market is fluctuating, and therefore, may not produce profit. BVSC suggests that stock exposure should be limited at 35-40 per cent of the portfolio. Investors should not buy stocks at high prices in the session. Similarly, investors should only buy new positions at their support zones, prioritising their portfolios existing positions.”

Viet Dragon Securities Company (VDSC) said in its report that the stock indices continued to increase slightly with low liquidity last week.

“Cash flow was still circulating in the market, the inflow was not really abundant though. Different stock groups alternately led the market, preventing the stock market from wide fluctuations,” VDSC said.

Investors should maintain an appropriate level of equity asset because this short-term uptrend still contains uncertainties, it said. — VNS