VN-Index gains for 3 straight weeks, with billion-dollar liquidity

Vietnam’s benchmark VN-Index on September 5-8 increased 1.42% from the previous week, marking its gain for three consecutive weeks.

During the week, the index, representing the Ho Chi Minh Stock Exchange (HoSE), rose from 1,150 to 1,241.48 points with strongly improved liquidity, averaging more than $1 billion per session.

The VN-Index had another week of positive trading, reaching its peak of the year at 1,245 points at a time.

In the trading session after the four-day National Day holiday (September 1-4), the green covered most stock groups, with fertilizer and energy tickers being the magnets to the cash flow.

In addition, the rally of many large-cap stocks in the VN30 basket also helped the VN-Index continue to extend its gain and re-approach the 1,245-point area. However, cautious sentiment as well as profit-taking pressure at the old peak caused it to lose steam in the week-ending session.

Foreign investors were strong net sellers for the second consecutive week with a value of over VND850.13 billion ($35.34 million).

VIC of private conglomerate Vingroup, VHM of real estate giant Vinhomes, and BID of BIDV bank had the most negative impact on the VN-Index. VIC alone took away more than 1.5 points from this index. On the contrary, BCM of Becamex IDC Corp., DGC of Duc Giang Chemicals, and DCM of Petrovietnam Ca Mau Fertilizer JSC were the most positive influencers.

Broker Saigon-Hanoi Securities (SHS) believes that the VN-Index is facing its short-term resistance level of 1,250 points and will need more time to form a new accumulation zone in preparation for a higher milestone at the strong medium-term resistance territory of 1,300 points.

According to the broker, the benchmark index is showing signs of slight correction, which is necessary for it to accumulate internal strength for the next uptrend.

“Short-term investors should be cautious and put down money only when the main index shows signs of surpassing 1,250 points with strong momentum,” it recommends.

In the medium and long term, the market has formed an uptrend and the VN-Index target will be the 1,300-point territory.

“Investors can take advantage of these corrections to increase their stock proportion, but they should choose leading tickers with good fundamentals and stable growth potential that are moving in the current accumulation state,” it advises.

Meanwhile, broker Vietcombank Securities (VCBS) believes that the market will have fluctuations and corrections in the short term. However, on the daily chart, the VN-Index has not shown signs of peaking, so the main trend is still up.

It recommends that surfing investors can sell and buy back stocks in such industries as securities and electricity during market corrections.