Foreign investors’ net selling value hits $98 mln in past week

Foreign investors net sold more than VND2.3 trillion ($98 million) on the Ho Chi Minh Stock Exchange (HoSE) during the trading week of May 22-26.

They mainly withdrew money from securities, banking, steel and real estate stocks.

The VN-Index, representing the HoSE, fluctuated in a narrow range of 1,060-1,075. The major index had a positive session at the beginning of the week with green covering all stock groups, approaching the 1,070-point territory.

However, selling pressure gradually increased in the next two sessions. Especially, the correction of many large-cap stocks in the VN30 basket in the week-ending session hindered the index from gaining.

Closing the May 22-26 week, the VN-Index decreased 0.31% from the previous week to 1,063.76 points.

GAS of PV Gas, VCB of Vietcombank, and VIC of Vingroup had the most negative impact on the main index. VCB alone "stole" nearly 1.5 points from this index. In the opposite direction, GEX of Gelex Corp., CTG of VietinBank, and GVR of Vietnam Rubber Group were the most positive influencers.

The trading value on the HoSE reached over VND61.7 trillion ($2.63 billion) while the volume fell 5.5% week-on-week.

Meanwhile, the liquidity on the Hanoi bourse HNX dropped 5.7% to VND7.4 trillion ($315.1 million).

Oil and gas stocks had a positive trading week with high liquidity. PVB of Petrovietnam Coating JSC gained 17.47%, OIL of PV Oil 7.45%, PXS of Petroleum Equipment Assembly & Metal Structure JSC 7.27%, and PVS of Petrovietnam Technical Services Corporation 7.07%.

Industrial park and rubber codes also showed good performance, like NTC of Nam Tan Uyen Joint Stock Company up 23.24%, SIP of Sai Gon VRG Investment Corporation 9.57%, PHR of Phuoc Hoa Rubber 6.48%, and IDC of IDICO Corporation 6.44%.

Real estate tickers also gained following the State Bank of Vietnam’s ceiling deposit rate and policy rate cuts.

Broker Saigon-Hanoi Securities (SHS) assessed that the market trend in the short, medium and long term will remain positive. If the VN-Index surpasses the resistance area around 1,075 points, it can move towards the territory of 1,100 points and further 1,150 points, creating a premise for a medium-term uptrend.

In case it fails to form a medium-term uptrend, the VN-Index's support area will be around 1,000-1,050 points.

"The current period is the time the market is moving from a cautious state to a more positive state," said SHS.

It recommended that short-term investors can consider buying stocks that attract cash flows and show active movements in correcting sessions, but should maintain their stock proportion at an average level. Meanwhile, long-term investors should buy leading stocks with good fundamentals and stable growth potential.

Technically, broker Vietcombank Securities (VCBS) said the market is still actively accumulating around the area of 1,060-1,070 points along with mixed ups and downs among stock groups. In a positive scenario, the VN-Index will continue to shake in the next 1-3 sessions to enter a new uptrend.

Investors need to continue keeping a close watch on the market, and may buy 20-30% of stocks that are tending to accumulate and successfully test their resistance area in such industries as securities and stocks, oil and gas and construction, it said.

Broker Viet Dragon Securities (VDSC) advised investors to carefully observe supply and demand movements in the territory of 1,065-1,075 points and maintain a reasonable proportion of stocks in their portfolio. Temporarily, they can continue to hold some stocks showing good technical signals in the short term.