VN-Index gains for 4 straight weeks

Vietnam’s benchmark VN-Index experienced a positive trading week ending May 17 with four out of five sessions closing in the green, marking its gain for the fourth consecutive week since the sharp decline in mid-April.

Closing the trading week, the VN-Index, which represents the Ho Chi Minh Stock Exchange (HoSE), rose 28.41 points, or 2.28%, to 1,273.11. The trading value on the major bourse reached VND100.55 trillion ($3.95 billion), up 1.8% from the previous week.

The HNX-Index of the Hanoi Stock Exchange (HNX) recorded 12 consecutive gaining sessions, ending the week at 241.54, rising 5.86 points or 2.49%.

Foreign investors were strong net sellers to the tune of VND2.17 trillion ($85.27 million) on the HoSE. They mainly net sold VHM of real estate developer Vinhomes, CTG of VietinBank, and VPBank of VPBank with VND767 billion ($30.14 million), VND411 billion and VND273 billion, respectively.

In the past week, the technology and telecommunications group showed positive performance with many stocks experiencing strong increases, notably VGI of Viettel Global (+27.87%), VTK of Viettel Consultancy and Services JSC (+15.61%), ELC of Elcom JSC (+5.72%), and FOX of FPT Telecom (+4.87%).

Securities stocks also gained with MBS of MBBank Securities up 11.19%, FTS of FPT Securities 8.12%, VDS of Viet Dragon Securities 7.93%, and DSC of DSC Securities 7.85%.

Other gainers included steel, construction, agriculture and livestock farming, and retail.

Broker Saigon-Hanoi Securities (SHS) assessed that the stock market has continued to develop positively, as the VN30 index, which tracks the performance of 30 largest caps, surpassed the 1,305-point mark and the VN-Index conquered the strong resistance territory of 1,250 points.

It recommended investors can continue to hold their portfolio and limit purchasing stocks at high prices.

Saigon Securities (SSI) believed that the upward momentum slowed down somewhat in the week-ending session but still maintained a positive signal. Therefore, the VN-Index may continue to move towards the area of 1,276-1,280 points with slight fluctuations.

Sharing the same view, Viet Dragon Securities Company (VDSC) said that with the signal of overcoming profit-taking pressure, the VN-Index has a chance to surpass the resistance threshold of 1,277 points and extend its recovery drive in the near future. However, supply and liquidity are likely to increase when the VN-Index approaches the challenging territory of 1,280-1,300 points.

In the short-term, investors should hold existing stocks or buy those with good signals from their support areas, the broker advised.