Illustrative image (Source: VNA) Hanoi (VNA) – Vietnamese stock indicesmay rise further and test their resistance levels this week on higher investors confidence, bolstered bypositive developments in global political conditions and good earnings reports.
Thebenchmark VN-Index on the HCM Stock Exchange rose 0.2 percent to close on April28 at 717.73 points. Vietnam’s key index totalled a three-day rally of 1.4 percent.
TheHNX-Index on the Hanoi Stock Exchange on Friday advanced 0.3 percentto end at 89.54 points, extending its gain for a third session, with totalgrowth of 1.9 percent.
Daily average market trading liquidity decreased from the previous week’slevel. More than 215.4 million shares were traded in each session, worth 4.25trillion VND (189 million USD), down 6.6 percent in trading volume and 13.6 percentin trading value.
Given the current financial, economic and political conditions, the two localstock indices are expected to rise this week and approach the resistance levelof 720 points for the VN-Index and 90 points for the HNX-Index, brokerage firmssaid in their weekly reports.
The current positive moves globally haveencouraged foreign investors to buy more Vietnamese shares, boosting confidenceamong domestic investors on the market’s future prospects.
According to the Foreign Investment Agency of theMinistry of Planning and Investment, foreign investors have poured nearly 11billion USD into Vietnamese assets in the last four months, an increase of 40.5percent year-on-year.
Of the total four-month foreign investment, a net 240 million USD was spent onpurchasing Vietnamese shares. In April alone, foreign investors posted a netbuy value of 2.25 trillion VND (nearly 100 million USD) on both local bourses.
According to Bao Viet Securities (BVSC), the figures prove foreign investorsremain highly confident about the Vietnamese market despite volatile globalpolitical and economic conditions in the first quarter.
Therecent geo-political instability including the rising tensions on theKorean peninsula, the war in the Middle East and the presidential election inFrance dampened investor confidence in global markets.
BVSC, however, said investor confidence wouldimprove this week as worries over the Democratic People’s Republic of Korea’snuclear test cooled and the French presidential election moved towards a positiveresult that indicated France would not leave the European Union.
A successful presidential election would helpFrance “stay” in the EU and ease worries of global markets and investors overthe “fall of the EU,” the BVSC said.
Foreign investors will remain in emerging markets, including Vietnam, as theyare worried about the feasibility of new Trump Administration policies,according to chief economist of Vina Capital Corporate Finance Vietnam Ltd,Alan Pham.
Investorsaround the globe had expected the Trump Administration’s new policies would cuttax and result in massive investment in infrastructure, encouraging companiesto return to the United States from emerging markets, Pham said.
However, following the first 100 days, investorsremained in emerging markets, recognising that the new policies were not stableand somewhat risky, he said.
In addition, investor confidence was bolstered bythe prospects of corporate earnings that will be fully revealed in a few weeks,according to BIDV Securities (BSC).
By the end of April, some 71 percent of a total702 listed firms on both local exchanges published their first-quarterearnings’ reports, posting total annual growth of 34 per cent compared with thefirst quarter of 2016.-VNA
Thebenchmark VN-Index on the HCM Stock Exchange rose 0.2 percent to close on April28 at 717.73 points. Vietnam’s key index totalled a three-day rally of 1.4 percent.
TheHNX-Index on the Hanoi Stock Exchange on Friday advanced 0.3 percentto end at 89.54 points, extending its gain for a third session, with totalgrowth of 1.9 percent.
Daily average market trading liquidity decreased from the previous week’slevel. More than 215.4 million shares were traded in each session, worth 4.25trillion VND (189 million USD), down 6.6 percent in trading volume and 13.6 percentin trading value.
Given the current financial, economic and political conditions, the two localstock indices are expected to rise this week and approach the resistance levelof 720 points for the VN-Index and 90 points for the HNX-Index, brokerage firmssaid in their weekly reports.
The current positive moves globally haveencouraged foreign investors to buy more Vietnamese shares, boosting confidenceamong domestic investors on the market’s future prospects.
According to the Foreign Investment Agency of theMinistry of Planning and Investment, foreign investors have poured nearly 11billion USD into Vietnamese assets in the last four months, an increase of 40.5percent year-on-year.
Of the total four-month foreign investment, a net 240 million USD was spent onpurchasing Vietnamese shares. In April alone, foreign investors posted a netbuy value of 2.25 trillion VND (nearly 100 million USD) on both local bourses.
According to Bao Viet Securities (BVSC), the figures prove foreign investorsremain highly confident about the Vietnamese market despite volatile globalpolitical and economic conditions in the first quarter.
Therecent geo-political instability including the rising tensions on theKorean peninsula, the war in the Middle East and the presidential election inFrance dampened investor confidence in global markets.
BVSC, however, said investor confidence wouldimprove this week as worries over the Democratic People’s Republic of Korea’snuclear test cooled and the French presidential election moved towards a positiveresult that indicated France would not leave the European Union.
A successful presidential election would helpFrance “stay” in the EU and ease worries of global markets and investors overthe “fall of the EU,” the BVSC said.
Foreign investors will remain in emerging markets, including Vietnam, as theyare worried about the feasibility of new Trump Administration policies,according to chief economist of Vina Capital Corporate Finance Vietnam Ltd,Alan Pham.
Investorsaround the globe had expected the Trump Administration’s new policies would cuttax and result in massive investment in infrastructure, encouraging companiesto return to the United States from emerging markets, Pham said.
However, following the first 100 days, investorsremained in emerging markets, recognising that the new policies were not stableand somewhat risky, he said.
In addition, investor confidence was bolstered bythe prospects of corporate earnings that will be fully revealed in a few weeks,according to BIDV Securities (BSC).
By the end of April, some 71 percent of a total702 listed firms on both local exchanges published their first-quarterearnings’ reports, posting total annual growth of 34 per cent compared with thefirst quarter of 2016.-VNA
VNA
