The VN-Index experienced five consecutive weeks of gains with foreign investors active buyers and improved liquidity, signalling positive short-term prospects, say analysts.
Following the uptrend from the previous week, the market continued to trade positively last week, although the increase was small.
VN-Index, which tracks the performance of stocks listed on the Ho Chi Minh Stock Exchage (HoSE) closed the trading week from August 8-12 at 1,262.33 points, up 9.59 points or 0.77% compared to the beginning of the week.
The Hanoi Stock Exchange’s HNX-Index increased 3.52 points or 1.17% to 303.42 points, while the unlisted public company market’s UPCoM-Index inched up 1.52 points or 1.66% to 92.84 points.
Liquidity dropped slightly, but remained above the recent 20-week average. The average trading value per session on the HoSE was VND15,583 billion ($666 million), down 6.27% compared to the previous week.
Last week was the fifth week in a row that the main index ended the week in green, the color of gaining, rising by a total 91.02 points or 7.59%. Average liquidity per session in the past five weeks stood at VND13,205 billion ($564.4 million).
Foreign investors last week experienced the fourth consecutive week of net buying with a total value of VND80.2 billion ($3.43 million). Specifically, they net bought VND95.6 billion on the HoSE and VND101.8 billion on the HNX, while net selling VND117.2 billion on the UPCoM.
HDB was the most purchased stock with a net buying value of VND156.6 billion, followed by E1VFVN30 (VND108 billion), SSI (VND95 billion), FUESSVFL (VND83.3 billion) and PVD (VND82.8 billion).
On the contrary, this group of investors strongly discharged VNM (VND213.5 billion), HPG (VND83 billion), and BSR (VND82 billion).
According to Vietcombank Securities (VCBS), the fact that foreign investors continued as net buyers shows the macro context and stock market valuations are bright spots.
However, higher interest rates and capital costs may affect businesses, while existing inflationary pressure will remain factors investors need to consider during this period, the Vietnamese broker said.
It recommends investors in the short term restructure and narrow their portfolio and actively sell weak stocks.
From a long-term perspective, VCBS noted the strategy of partial disbursement for groups of stocks like real estate, industrial park real estate, and construction could still be considered as the economy grows.
Another broker Saigon-Hanoi Securities (SHS) said since hitting the bottom at around 1,140 points in early July 2022, the market has experienced five consecutive weeks of recovery to surpass 1,260 points.
“Therefore, the short-term prospect remains positive while the main index might head to the next resistance zone of between 1,260-1,285 points in the coming time.
“From a medium and long-term perspective, valuations remain low compared to the multi-year average in the context that economic growth is maintained. Investors can consider buying stocks with growth prospects in the third quarter of 2022,” said SHS.