Stock market shows positive signs, more short-term shakes forecast

Shares in Vietnam finished higher in the last three consecutive sessions to drag up the VN-Index, but experts warned of some shocks in the short term.

After two consecutive weeks of decline, the market has recovered this week. On the Ho Chi Minh Stock Exchange (HoSE), Vietnam’s benchmark VN-Index closed on Friday at 969.33 points, 14.8 points higher than last Friday. The Hanoi Stock Exchange’s HNX-Index gained 1.06 points the entire week to finish at 190.87 points.

Liquidity also improved. This week’s trading value on the HoSE increased by 11.4% against last week to VND58,720 billion ($2.37 billion), while that on HNX soared 37.7% to VND4,638 billion ($187 million).

The stocks that have strongly supported VN-Index this week included VIC of Vingroup, VHM of Vinhomes, VRE of Vincom Retail, together with HPG, MSN, CTG of Hoa Phat Group, Masan Group, and major lender Vietinbank, respectively.

On the contrary, property developer Novaland’s NVL, Eximbank’s EIB, brewery Sabeco’s SAB, and property developer Phat Dat’s PDR hit the index with the most negative impacts.

Like last week, foreign investors continued as net buyers on the market this week with a net value of over VND5,155 billion (about $207.8 million) on both exchanges.

VPS Securities analyst Le Duc Khanh said that Wednesday saw a very strong recovery session but that VN-Index later shook. He forecast the index would head to a resistance area of 960-980 points next week, with more short-term shakes predicted.

MB Securities expert Ngo Quoc Hung said this week’s recovery in the Vietnamese stock market was behind those seen on international markets. “The next resistance area would be 1.050-1.075 points,” he said.

According to broker Saigon-Hanoi Securities (SHS), the index has not gotten rid of a prolonged downtrend despite Friday’s closing at 969.33 points. However, the broker forecast next week was likely to be better than this week based on net purchases by foreign investors and positive signs from blue-chips VCB (Vietcombank), BID (BIDV bank), VIC (Vingroup), GAS (PV Gas), and HPG (Hoa Phat Group).

Vietcombank Securities forecast VN-Index would next week fluctuate in a narrower range to stabilize at a new price level with a bottom next week.