Illustrative image (Source: VNA) Hanoi (VNS/VNA) - The VN-Index is expected to enter an uptrend towards anew resistance zone after successfully penetrating the psychological resistancemark of 1,000 points, analysts said.
TheVN-Index on the Ho Chi Minh Stock Exchange soared 1.68 percent to close November1 at 1,015.59 points.
It wasthe strongest gaining session the VN-Index had witnessed since March 12, whenthe index exceeded the 1,000-point mark for the first time this year to closeat 1,001.32 points.
The indextotalled a gain of 1.91 percent last week.
Anaverage of 215 million shares was traded on the southern bourse per sessionlast week, worth 4.2 trillion VND (180 million USD).
Accordingto Duong Van Chung, Director of the North branch at MB Securities, the tradingsession on November 1 played a decisive role in leading the trend of the marketfrom now until the Lunar New Year.
Chungsaid the VN-Index had experienced many failures when trying to conquer the1,000-point landmark, which has negatively affected the psychology ofinvestors.
After thebooming session on November 1, investor sentiment has improved significantlyand cash flow has come back to the market, Chung told newssite tinnhanhchungkhoan.vn.
“In termsof technical analysis, we believe this session will serve as momentum to pushthe VN-Index nearer to the 1,100-point level before the Lunar New Year,” hesaid.
Chungexpressed his optimism of the likelihood the market would grow continuously forthe next two to three months.
Themarket is now strongly supported by macroeconomics stability. In the thirdquarter, Vietnam’s GDP growth recorded a nine-year high. The US Federal Reserves’decision to cut interest rates and the constant reduction of interest ratesamong the central banks around the world also spells good news for the globalstock markets and the Vietnamese stock market, according to Chung.
Accordingto Bao Viet Securities Co (BVSC), the VN-Index is expected to enter an uptrendtoward resistance zone of 1,035-1,045 points very soon.
“In ashorter term, the index will possibly head toward the resistance zone of1,019-1,024 points next week,” BVSC said.
“However,the index may encounter a throwback to 1,000-1,006 point range beforecontinuing its uptrend.”
Cash flowis forecast to improve while foreign investors’ net buy is expected to increaseafter FED’s interest rate cut. Large-cap and bank stocks will possibly dominatethe market. Cash flow is expected to rotate among stock sectors to support themarket’s uptrend.
If the1,000-1.004 resistance zone is penetrated, the market may experience some shortvolatility, which is a good opportunity for investors to buy new or coverpreviously sold positions, according to BVSC.
NguyenTrung Du, Director of the Business Development Section at VNDirect SecuritiesCo said the flourishing of VN-Index on Friday dispelled market gloom andcautious sentiment that had lasted for the whole of the previous month.
Membersof the “Vin” family, Vingroup (VIC), Vinhomes (VHM) and Vincom Retail (VRE),reported impressive gains and pushed up the indices.
VHMsoared 11 percent last week and contributed more than nine points to the riseof VN-Index.
Du saidimproved liquidity and a vibrant trading would bring cash flow back to themarket and open up many short-term trading opportunities while the positivecontext of the international stock market will support the Vietnamese market inthe next trading week.
Accordingto Nguyen Hong Khanh, head of market analysis at Vietnam InternationalSecurities Joint Stock Company (VIS), the market is in the recovery period andthis is the best time to purchase stocks.
“Therewill be some correction sessions, but the overall market trend from now untilthe end of the first quarter of next year is growing,” Khanh said.
“Bankingand retail will be more attractive than other sectors,” he said.
On the HanoiStock Exchange, the HNX-Index rose 0.53 percent to end November 1 at 105.75points.
Thenorthern index gained a total of 0.99 percent last week./.
VNA
