After a successful trading week with five consecutive rallying sessions, Viet Nam’s benchmark VN-Index finally hit the short-term peak of 1,130 points and is expected to maintain its upward trend and open next week’s session with a positive status, analysts said.

The benchmark VN-Index on the HCM Stock Exchange (HOSE) increased 1 per cent to close at 1.150,19 points on Friday or a five-day rise of 2.38 per cent.

Meanwhile, the HNX Index on the Ha Noi Stock Exchange (HNX) rose 1.38 per cent to end at 133.10 points, expanding its five-day rally to 4.33 per cent.

An average of more than 305.5 million shares was traded in each session last week, worth VND8.2 trillion (US$361.6 million).

The trading figures were up 0.4 per cent in volume and down 3.6 per cent in value, compared to the previous trading week’s numbers.

The UPCOM Index on the Unlisted Public Company Market (UPCoM) gained 0.35 per cent to stand at 61.80 points, a three-day increase of 0.88 per cent.

Furthermore, the unlisted market index scored weekly growth of only 0.8 per cent after five up-and-down sessions.

According to market strategy expert Ngo Quoc Hung at Vietinbank Securities Company, regardless of the impediments from the portfolio restructuring of the two exchange-traded funds, FTSE ETF and V.N.M ETF, with many blue-chips suffering from strong selling pressure, the market still had a successful trading week, surpassing its short-term peak.

However, large-cap stocks are still the main drivers of the market and directly affecting the indexes, including prominent names like Vincom Retail (VRE), brewer Sabeco (SAB), property developer Vingroup (VIC), Masan Group Corporation (MSN), insurer Bao Viet Holdings BVH, budget carrier Vietjet (VJC), Viet Nam Prosperity Joint Stock Commercial Bank (VPB) and dairy firm Vinamilk (VNM).

Bank shares were the strong supporters of the market during last week’s trading sessions, pushing the VN-Index to pass its peak, therefore, they are still worthy investment channels this year, Hung told tinnhanhchungkhoan.vn.

Sharing the sentiment, Vu Minh Duc, head of individual investor analysis division at Viet Capital Securities Company, said large-cap stocks, mainly banks, will draw most investors’ attention and are expected to gain impressive profits in 2018.

In a positive scenario, the VN-Index could move towards a new record high of 1,170-1,180 points in the short term, Duc said.

He also added that a significant part of the cash flow had turned to speculative mid-cap and small-cap stocks as investors are seeking short-term profit.

“Currently, I see that the VNMidcap and VNSmallcap indices are also performing well. Therefore, in the scenario of a rising market next week, I think that both the large-cap stocks and speculative stocks will have the opportunity to increase,” Duc told tinnhanhchungkhoan.vn

According to Tran Anh Tuan, head of analysis at Vietcombank Securities Co, March and April are the peak periods for shareholders’ meeting season.

Listed companies’ Q1 earnings announcements, dividend payment plans and 2018 business plans will be announced and become short-term supporting information for investors, greatly influencing the market performance, Tuan said.

“This will be a necessary time for investors to review the business prospects of enterprises in the first quarter as well as in 2018,” Tuan told tinnhanhchungkhoan.vn.

Hung said this year’s shareholders’ meeting season would support investors in the context that seeking investment opportunities is becoming increasingly difficult.

As the distinction between groups of stocks is becoming clearer, some investors tended to purchase and keep promising stocks that have an effect on the indexes, Hung added.

Stocks of companies with good business prospects and good business results in the first quarter of 2018 will attract cash flow, especially those operating in the sectors of securities, real estate, retail and aviation services, Hung told tinnhanhchungkhoan.vn. — VNS