Statues of bear and bull market ỉn front of the Ho Chi Minh Stock Exchange (HoSE)'s building. — (Photo vneconomy.vn) Hanoi (VNS/VNA) - The market witnessed strong buying interest last weekand analysts from many securities firms expect indices to continue to hit newhighs, but have warned investors to be cautious.
The benchmark VN-Index broke the historic peak of the 1,300 point-level on May 25,boosted by bank stocks. The index kept breaching new highs and finished theweek at 1,320.46 points. The HNX-Index ended on May 28 at 310.46 points.
That was the highest close for both benchmarks in history.
For the week, the VN-Index gained 1.73 percent, while the HNX-Index rose by3.37 percent.
Market liquidity also broke the record level of 31 trillion VND (1.35 billionUSD). Of which 24.8 trillion VND (1.1 billion USD) was poured into the Ho Chi MinhStock Exchange (HoSE), causing overloading issues in recent sessions.
According to MB Securities JSC, with the current strong cash inflows, themarket is likely to extend its rally to higher levels.
Analysts from SSI Securities Corporation (SSI) were also optimistic about themarket this week as there are signs supporting the current upward trend of theVN-Index.
“There is a possibility that the index will continue to edge higher to 1,350 -1,400 points, so corrections in the short term, if they happen, will createchances for investors to increase stock proportion in their portfolios,” SSIadded.
On the technical front, BOS Securities Corporation said that the VN-Indexresurged after testing the 1,300 point-level again. The strong cash flows arethe market’s driving force and technical indicators also support the bullmarket.
Therefore, the VN-Index may keep its upward trend in the near future and headtoward the next resistance zone of 1,340 points, BOS forecasts.
Meanwhile, some securities firms have a more cautious view of the market thisweek.
According to Saigon - Hanoi Securities JSC, the market recorded a fourthstraight weekly gain on strong cash inflows and investors’ bullish sentiment.But as the VN-Index closed the week above 1,320 points, it can be considered asa strong tug-of-war between buyers and sellers in the near future.
The area of 1,320 - 1,325 points is vulnerable territory to the VN-Index, soinvestors should be more careful this week, SHS suggests.
Analysts from SHS expect fluctuations might reappear when rising pressure fromprofit-taking activities weigh down the market.
Last week, bank stocks led the market and gained 5.8 percent in marketcapitalisation. Many stocks rose than 1 percent, such as VPBank (VPB),Vietcombank (VCB), MBBank (MBB), Asia Commercial Bank (ACB), Vietinbank (CTG)and Techcombank (TCB).
It was followed by stocks in the material sector, up 4.8 percent in marketcapitalisation due to pillar stocks like Hoa Phat Group (HPG), Nam Kim SteelJSC (NKG) and Hoa Sen Group (HSG).
Other stocks from the healthcare and pharmaceutical sector, information technologyand the utilities sector also climbed more than 1 percent in marketcapitalisation.
However, foreign investors were still net sellers last week, with a net soldvalue of 270 billion VND (11.7 million USD). The amount was much lower thanthat of the last few weeks, which witnessed a net sold value of trillions ofdong./.
VNA
