Investors at the trading floor of the Bao Viet Securities Company (Photo: VNA) Hanoi (VNS/VNA) - Vietnamesestock markets are expected to remain positive in the short-term, with theVN-Index moving towards the 990-1,000 point range next week.
The benchmark VN-Index on the Ho Chi Minh Stock Exchange rose 0.14 percent toclose February 22 at 988.91 points, marking a five-day gain of nearly 4 percent.
The minor HNX Index on the Hanoi Stock Exchange finished last week up 0.66 percentto close at 106.82 points, marking a weekly gain of 0.6 percent.
An average of 228.7 million shares was traded in each session last week, worth 4.9trillion VND (210 million USD).
According to Bao Viet Securities Company, the market would be strongly affectedby large-cap stocks and see a wide divergence among stock groups.
Capital flows were also forecast to run into stocks that had not madesignificant gains or were accumulating profits such as oil and gas, bank,building material and real estate stocks.
“Although the short-term trend remains positive, investors should avoid newbuying positions at above 991 points due to the rising possibility of a marketcorrection at that resistance zone,” BVSC said in its report.
Banks, property developers, consumer staple firms and petroleum companies werethe driving forces behind stock market last week thanks to business results,BVSC said.
Since the Tet (Lunar New Year)holiday, foreign investors had bought a net value of 2.7 trillion VND on HoSE,helping the market gain momentum.
A large part of the foreign cash inflow came from notable exchange-traded funds(ETFs) such as VanEck Vectors Vietnam ETF (VNM ETF), and db-trackers VietnamETF (FTSE Vietnam ETF) and VFMVN30 ETF.
According to data, since the Lunar New Year, FTSE Vietnam ETF has issued atotal of 520,000 fund certificates, equivalent to 390 billion VND. AsVietnamese stocks accounted for 100 percent of the FTSE Vietnam ETF portfolio,all of the money above was disbursed by FTSE Vietnam ETF into Vietnamesestocks.
VNM ETF has also issued more than 1 million fund certificates, equivalent to 400billion VND since the Lunar New Year. From the beginning of 2019, VNM ETF hasissued more than 2 million fund certificates, equivalent to 760 billion VND.
Unlike FTSE Vietnam ETF, the number of Vietnamese stocks in VNM ETF’s portfolioaccounted for only about 75 percent. However, the number of fund certificatesissued in the early days of the year, worth millions of dollars, also broughtpositive signs to the Vietnamese stock market.
Meanwhile, the VFMVN30 ETF has issued 16.3 million fund certificates,equivalent to 246 billion VND since the Lunar New Year. Since the beginning of2019, VFMVN30 ETF has issued 23.8 million fund certificates, equivalent to 353billion VND.
It was estimated that since the Lunar New Year, the amount of foreign moneyflowing into the Vietnamese stock market via the three funds were equivalent to37 percent of total foreign net buying on HoSE.-VNS/VNA
VNA
