Shares in Vietnam experienced an uptrend during the week as pillar stocks were on the rise, driving up investor sentiment.
Vietnam’s benchmark VN-Index on the Ho Chi Minh Stock Exchange closed at 1,080 points Friday, gaining 108.55 points compared to the previous Friday.
The HNX-Index at the Hanoi Stock Exchange, where mid and small caps list, gained 19.19 points over the previous Friday to close at almost 216 points.
This week also witnessed foreign investors as net buyers for four consecutive sessions. They mainly bought HPG of steelmaker Hoa Phat Group, with 81.6 million shares in net, followed by STB of Sacombank and SSI of Saigon Securities Inc., with 40 million and 29.8 million, respectively.
In November, foreign investors net bought more than VND19 trillion ($779.8 million), a record in the Vietnamese stock market.
Thanks to the recovery, driven by soars in pillar stocks in the banking and property sectors, investor sentiment has improved, said Hoang Cong Tuan, chief economist at securities broker MB Securities.
However, he noted, “the market may see a correction due to profit-taking pressure. Investors need to calm down and hold a long-term vision.”
Similarly, Le Duc Khanh, investment capability development director at VPS Securities, said that after five consecutive gaining sessions, the VN-Index saw some shakes in the region around 1,050 points, therefore long-term investment should be prioritized.
“For December, I expect the index would reach the 1,100-1,250 range as it would receive a lot of support from the net buying of foreign investors while market liquidity keeps improving,” he said.
Saigon-Hanoi Securities is cautious, saying that the market uptrend has not been clear. A report by the broker writes, “The level at 1,000 points is both a psychological support level and a very reliable area before the pandemic… At present, 1,150 points will be a strong resistance level to pay attention to.”
According to Vietcombank Securities, a shaking VN-Index is normal during the recovery period. It is likely that the index would head toward 1,080 points, even 1,130 ahead of stronger selling pressure.