VN-Index past 1,200 points after 4 consecutive weeks of gains

Vietnam’s benchmark VN-Index has recorded four consecutive weeks of gains, climbing to 1,207.67 points with a sharp increase in both trading value and volume.

The index, which represents the Ho Chi Minh Stock Exchange (HoSE), expanded in the first three sessions of the July 24-28 week and fluctuated strongly around the 1,200-point mark. In the week-ending session, active demand for many large-cap stocks in the VN30 basket helped the major index extend its gains and go past 1,200 points.

It closed the week at 1.84% higher than the previous week to reach 1,207.67 points. The VN30 index, which tracks the performance of 30 largest caps in the HoSE, surged 2.18% to 1,212.45 points, and the HNX-Index on the Hanoi Stock Exchange (HNX) rose 1.09% to 237.54 points.

SAB of brewer Sabeco, BCM of Becamex IDC Corp., and HPG of steel giant Hoa Phat had the most negative impacts on the index.

Meanwhile, VHM of real estate developer Vinhomes, VNM of dairy giant Vinamilk, and MSN of Masan Group were the most positive influencers. VHM alone contributed more than 1.5 points to the index.

Trading value on the HoSE reached over VND102.6 trillion ($4.33 billion) in the week, up 14.2% from the previous week. Notably, in the Wednesday session, it reached its highest level in a year at nearly VND23 trillion ($970.7 million). The figure on the HNX also soared 14.2% week-on-week to more than VND9.2 trillion ($388.3 million).

Foreign investors were net buyers for the second week on the HoSE to the tune of VND807 billion ($34 million). On the HNX, their net buying value hit VND53.66 billion ($2.26 million).

Real estate stocks showcased the best performance during the week with SJS of Song Da Urban & Industrial Zone Investment & Development JSC gaining 25.99%; NVL of Novaland, 21.1%; DXG of Dat Xanh Group, 15.5%; LGL of Long Giang Land 15.2%; NBB of 577 Corp. 14.29% and VPH of Van Phat Hung Corp 13.78%.

NVL recorded a trading volume of 95.93 million shares in the Monday session, the highest in nearly eight months.

Tickers in the financial services and securities industries also saw positive movements. Most of them gained better than the main index with improved liquidity such as VIX of VIX Securities, up 8.57%; VND of VNDirect Securities 7.98%; and SHS of Saigon-Hanoi Securities 5.44%.

Caution advised

Broker Saigon-Hanoi Securities (SHS) has forecast that the market will continue to break out in the short term and fluctuations are unavoidable. Therefore, short-term investors should be cautious and only invest 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 may see unexpected corrections in the coming sessions. Investors should remain cautious when the index nears this territory, prioritize risk management and proactively take profits from some of their stocks.

Meanwhile, Viet Dragon Securities (VDS) believes that in the coming sessions, the market will head to the resistance zone of 1,220-1,230 points. “Investors can continue holding stocks with good signs but still need to consider taking profits from stocks that have risen to the resistance area to rebalance their portfolio.”.