VN-Index gains for three consecutive weeks

The VN-Index, which represents the Ho Chi Minh Stock Exchange (HoSE), marked a three-week gaining streak on Friday, but corrections are needed to create momentum for it to reach higher targets, according to brokers.

The benchmark index increased strongly in the territory of around 1,110 points in the first two sessions of the week, but was under selling pressure in the area of 1,125-1,130 points. Closing the June 12-16 trading week, the VN-Index had expanded 0.7% from the previous week to 1,115.22 points.

VHM of real estate giant Vinhomes, CTG of VietinBank, and SAB of brewer Sabeco had the most negative impacts on the VN-Index, while STB of Sacombank, HPG of steel maker Hoa Phat, and VCB of Vietcombank were the most positive influencers. VCB alone added nearly 1.8 points to the main index.

During the week, trading value on the HoSE reached VND85.46 trillion ($3.6 billion), a slight decrease of 6.5% from the previous week, while trading volume dropped 9.2%. Trading value on the Hanoi Stock Exchange (HNX) fell slightly to VND10.28 trillion ($436.8 million).

Foreign investors were net buyers on the HoSE in all five sessions during the week to the tune of VND1.8 trillion ($76.5 million). They mainly net purchased steel and securities stocks. On the HNX, this group net bought VND94.55 billion ($4 million).

The oil and gas group showed a positive performance with many codes gaining and increased transaction values, including PVG of Petrovietnam LPG JSC (+12.22%), PVS of Petrovietnam Technical Services Corporation (+5.88%), PVB of Petrovietnam Coating JSC (+5.83%), ASP of An Pha Petrol JSC (+5.77%), and PGC of Petrolimex Gas Corporation (+2.22%).

The banking group saw mixed results. While many tickers surpassed their previous peaks such as VCB (+4.48%), SHB of Saigon-Hanoi Bank (+3.7%), and STB of Sacombank (+3.2%), some were under correction pressure, including PGB of PGBank (-6.64%), VBB of Vietbank (-3.64%), NVB of National Citizen Bank (-3.16%), and LPB of LienVietPostBank (-2.61%).

Securities stocks expanded with high liquidity. Among the gainers were SHS of Saigon-Hanoi Securities (+6.3%), SSI of Saigon Securities (+3.37%), and MBS of MBBank Securities (+3.28%).

Broker Saigon-Hanoi Securities JSC held that in the short term, the market will develop positively towards the target of 1,150 points. In the medium term, it is moving in a large accumulation range with the support area of around 1,000-1,050 points and a resistance zone of 1,150 points.

The market will continue to open up opportunities for surfing investors, it said, adding that short-term investors can take advantage of the market's corrections to increase their portfolios. Meanwhile, medium- and long-term investors should choose stocks in leading firms with good fundamentals and stable growth potential that are moving in the current accumulation state.

Vietcombank Securities (VCBS) believed that continuous ceiling interest rate cuts are expected to shift cash flows from bank deposits to higher risk investment channels such as securities.

Technically, selling pressure increased strongly, signaling a high possibility of a short-term correction, it said. However, the market is still enjoying positive developments and after a long period of rallying, corrections are necessary to create momentum for the VN-Index to reach higher ground, the broker noted.

In a positive scenario, the VN-Index will fluctuate in a range of about 20 points around 1110-1130 points, VCBS said, advising investors to closely follow market movements next week, take caution, and patiently wait for the market to show signs of balancing out before putting money down.

Sharing the same view, Viet Dragon Securities (VDSC) said that soaring liquidity in the last session of the week showed the presence of selling pressure.

“Investors should closely observe supply and demand and consider taking profits from stocks that have increased rapidly recently or are under selling pressure,” it advised.