VN-Index gains over 100 points after one month

After several weeks of consecutive gains, Vietnam’s benchmark VN-Index now stands at 1,225.98 points, up nearly 106 points since June 30.

During the July 31-August 4 week, the VN-Index, which represents the Ho Chi Minh Stock Exchange (HoSE), rose 18.31 points, or 1.6%, from the previous week, and marked its fifth consecutive gaining week.

BID of BIDV bank, SSB of SeABank, and VCB of Vietcombank had the most negative impact on the VN-Index. On the other side, VHM of Vinhomes, VIC of Vingroup, and ACB of Asia Commercial Bank were the most positive influencers. VIC alone contributed more than 4 points to the main index.

Trading value on the HoSE reached over VND114.1 trillion ($4.8 billion) in the week, up 11.2% from the previous week. The figure on the Hanoi Stock Exchange (HNX) also rose 7.2% week-on-week to more than VND9.88 trillion ($416.26 million).

Foreign investors were net buyers for the third consecutive week on the HoSE to the tune of VND79.2 billion ($3.34 million). On the HNX, their net buying value hit VND66.6 billion ($2.8 million).

Meanwhile, individual Vietnamese investors net sold VND379 billion ($15.97 million) on the southern bourse.

Real estate stocks continued to show the best performance, with many codes attracting cash flows such as VIC (+20.78%), QCG of Quoc Cuong Gia Lai Corp (+12.6%), TCH of Hoang Huy Investment Financial Services JSC (+10.68%), NBB of 577 Corp. (+8.78%), and NVL of Novaland (+7.9%).

Banking tickers also gained well with SGB of Saigon Bank rising 34.48%, EIB of Eximbank 16.38%, ACB 9.91%, LPB of LPBank 5.83%, and SHB of Saigon-Hanoi Bank 5.56%.

Broker Saigon-Hanoi Securities (SHS) held that the VN-Index has not seen a strong enough correction to shake off and consolidate its trend, so the market is likely to fluctuate next week. Therefore, short-term investors should be cautious and only put down money during corrections. In the medium and long term, the market is on an uptrend, targeting the 1,300-point territory.

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

According to Vietcombank Securities (VCBS), the VN-Index will still record gains around the short-term resistance area of 1,230 points before stronger and more unexpected shakes appear. Investors should consider disbursing an additional 20-30% for existing stocks that tend to rise above their resistance territories in industries such as real estate and securities.

Meanwhile, KB Securities Vietnam (KBSV) forecast that although the correcting pressure will continue in the coming sessions, the VN-Index has many opportunities to extend its gaining streak and challenge the resistance zone around 1.23x. Investors are recommended to sell stocks at the index’s resistance zones and only buy back around its support areas.