Vietnam stock market continues to rise but not stable yet

The current uptrend in the Vietnamese stock market is likely to continue for some time, but the situation is yet to stabilize, experts caution.

For the second day in succession, VN-Index of the Ho Chi Minh Stock Exchange (HoSE) closed at 1,051.81 points Friday, up 0.12% over Thursday. Over the whole week, the country’s benchmark index lost 2.6% with last week witnessing stronger upticks.

Market analysts are of the view that the uptrend is yet to stabilize.

This week’s trading value on the HoSE decreased 5.2% from the previous one to VND86,890 billion ($3.69 billion). The figure for the HNX increased by 28% to VND9,392 billion ($398.4 million).

Foreign investors engaged in the fifth consecutive week of net buying on both exchanges with a total net purchase value of more than VND4,351 billion ($184.6 million).

MB Securities expert Hoang Cong Tuan predicted that the market was likely to rally, but added that corrections will also happen. His shares for reference were KDH, PVS, CTG, and BID of property developer Khanh Dien House, major gas supplier PV Gas, VietinBank, and BIDV bank, respectively.

Broker SHS, meanwhile, felt this week’s corrections were natural, following three consecutive gaining weeks.

It said the psychological threshold of 1,000 points was a psychological support level. The market’s current situation was a technical recovery - the first stage after hitting the bottom. While this phase is often strong and prolonged, but the market has yet to enter an established uptrend, SHS analysts said.

Vietcombank Securities said it was normal for the VN-Index to fluctuate strongly at this point. They believe that the benchmark index will need to rise to around 1,050 points to absorb profit-taking supply. Then, it can go up 1,080 points, and even further to 1,130. Therefore, rapid surfing at that point can deliver some gains, it said.