VN-Index posts gains for third straight week

Vietnam’s benchmark VN-Index has marked a streak of three consecutive gaining weeks with strong cash flows and a return of foreign investors.

The index, which represents the Ho Chi Minh Stock Exchange (HoSE), extended its uptrend and remained in the green in the early sessions of the July 17-21 week, going through the resistance territory of 1,170.

However, investor caution triggered some fluctuations in the main index’s subsequent sessions, causing it to fall to 1,165 at one point.

The last two sessions saw a resurgence in demand and the positive influence of blue chips helped the VN-Index surpass the 1,180-point territory.

It closed the week up 1.5% from the previous week at 1,185.9 points.

DHG of Hau Giang Pharmaceuticals, BCM of Becamex IDC Corp. and TMS of Transimex Corp. had the most negative impact on the VN-Index. DHG alone stole nearly 0.5 points.

On the other side, VHM of real estate developer Vinhomes, MWG of Mobile World Investment Corp., and MSN of Masan Group were the most positive influencers. VHM alone contributed nearly 1 point.

Meanwhile, on the Hanoi Stock Exchange (HNX), the HNX-Index rose 2.08% week-on-week to 234.98 points.

Trading value on the HoSE reached over VND89.67 trillion ($3.79 billion), down 2.1% from the previous week, while the Hanoi bourse saw it rise 8.4% to nearly VND9.87 trillion ($417.2 million).

Foreign investors, after many consecutive weeks of net selling, returned as net buyers to the tune of more than VND1.4 trillion ($59.18 million) on both exchanges – VND1.2 trillion on the HoSE and nearly VND200 billion on the HNX.

Real estate stocks showed positive movements in the past week, with many big gainers including: NDN of Danang Housing Investment Development JSC (21.57%); HDC of Ba Ria-Vung Tau House Development JSC (16.49%); CEO of CEO Group (13.21%); DIG of DIG Corp. (10.71%); and PDR of Phat Dat Real Estate Development Corp. (10.05%).

Banking codes also posted gains with improved liquidity like VBP of VPBank (7.54%), SHB of Saigon-Hanoi Bank (5.11%), HDB of HDBank (4.66%), and MSB of Maritime Bank (4.33%).

Breakthrough momentum continues

Broker Saigon-Hanoi Securities (SHS) forecasts that the VN-Index could see a new uptrend after surpassing 1,150 points, adding that it will see corrections in the short term.

It recommends that short-term investors be cautious in the next trading week. "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."

According to Vietcombank Securities (VCBS), with the current momentum, the VN-Index will move to the territory of 1,200 points before stronger and more sudden corrections happen. It says investors may consider increasing the proportion of stocks that are trending above their resistance area and attracting good demand in such groups as steel, securities and real estate.

Sharing the optimism, Saigon Securities (SSI) notes that after accumulating within a narrow range of 1,168-1,176 points, the VN-Index has accelerated past the 1,180-point zone. Technical indicators signal that the main index will continue to gain and move towards the next short-term target at 1,195-1,197 points in the coming sessions.

Viet Dragon Securities (VDSC) predicts that the VN-Index is likely to move towards the resistance territory of 1,200-1,220 points in the near future, but great supply pressure will weigh on the market.

Therefore, it advises investors to continue to hold stocks with a good accumulation background and consider taking profits from those that have risen to the resistance area to rebalance their portfolios.