Investors monitor the market at the ACBS Securities office in Hanoi (Photo: VNA) Hanoi (VNS/VNA) -Vietnam’s benchmark VNIndex has extended its growth for a fourth straightweek, though recent market trading conditions suggest the benchmark index couldstruggle with rising selling pressures this week.
The benchmark VN Index onthe Ho Chi Minh Stock Exchange ended last week at 1,050.11 points, posting aweekly gain of 3.7 percent.
The minor HNX Index onthe Hanoi Stock Exchange finished January 12 at 120.76 points and recorded aweekly growth of 1.5 percent.
The benchmark index hasincreased by 6.7 percent since the beginning of the year, and 12.3 percentsince mid-September, while the northern market index has risen 3.3 percent and8.2 percent during the same period.
An average of more than 405.6million shares, valued at 9.27 trillion VND (412.2 million USD), were traded on the twolocal exchanges in each session last week.
Also, market tradingliquidity reached a record high on Friday, in terms of trading value, as 11.9trillion VND worth of shares were traded on both local exchanges.
The market growth wasalso supported by the net foreign investment, which reached 2.56 trillion VND onthe two markets.
The market sentiment wasmainly dominated by investors’ expectations for businesses to deliver positiveearnings reports for their performances in the fourth quarter of 2017, as wellas the entire year.
Such expectations boostedstocks in the financial-banking, energy, food and beverage, retail and propertydevelopment industries, as investors had priced in those companies until theyofficially released all earnings reports.
Leading businesses inthose sectors saw share prices increase last week, including Vietcombank (VCB),property firm Vingroup (VIC), insurer Bao Viet Holdings (BVH) and PetroVietnamGas Corporation (GAS).
VCB gained 7.4 percentafter five trading sessions, VIC was up 6.7 percent, BVH rose 4.5 percent andGAS advanced 2.8 percent.
However, marketvolatility increased in the last two sessions, in which the VN Indexencountered strong selling pressure when it reached the level of 1,055 points.
Tran Duc Anh, an analystat Bao Viet Securities Company, told tinnhanhchungkhoan.vn that sellingpressures were quite heavy last week, as seen by a record-high tradingliquidity and a mixed performance among all stocks.
Though the VN Index wasable to increase over five straight sessions, the main source of strength camefrom large-cap stocks, such as banks and energy firms, which was not a goodsignal for the market, he said.
“As the VN Index is quitevolatile at the moment, I am not too surprised that the index would decline tothe 1,000 point level in the next one or two weeks,” Anh said.
Chau Thien Truc Quynh,head of the brokerage division at Viet Capital Securities Company, told tinnhanhchungkhoan.vn that both stock indices were showing signs of weakening and becoming morevulnerable.
The benchmark VN Indexthis week will drop to test the level of 1,040 points, after struggling andsuffering from a technical correction, she said.
Sharing a similar marketoutlook, brokerage firms also forecast that the benchmark index would eitherdecline or move narrowly on high profit-taking pressures.
Bao Viet SecuritiesCompany said in its weekly report that investors began to trade morecautiously, as the market was more exposed to short-term risks, thus,increasing their profit-taking.
The company predictedthat the benchmark VN Index could move between 1,055 and 1,060 points thisweek, while Sai Gon-Hanoi Securities Company expected the index would movenarrowly, around the range of 1,040-1,060 points.-VNA
The benchmark VN Index onthe Ho Chi Minh Stock Exchange ended last week at 1,050.11 points, posting aweekly gain of 3.7 percent.
The minor HNX Index onthe Hanoi Stock Exchange finished January 12 at 120.76 points and recorded aweekly growth of 1.5 percent.
The benchmark index hasincreased by 6.7 percent since the beginning of the year, and 12.3 percentsince mid-September, while the northern market index has risen 3.3 percent and8.2 percent during the same period.
An average of more than 405.6million shares, valued at 9.27 trillion VND (412.2 million USD), were traded on the twolocal exchanges in each session last week.
Also, market tradingliquidity reached a record high on Friday, in terms of trading value, as 11.9trillion VND worth of shares were traded on both local exchanges.
The market growth wasalso supported by the net foreign investment, which reached 2.56 trillion VND onthe two markets.
The market sentiment wasmainly dominated by investors’ expectations for businesses to deliver positiveearnings reports for their performances in the fourth quarter of 2017, as wellas the entire year.
Such expectations boostedstocks in the financial-banking, energy, food and beverage, retail and propertydevelopment industries, as investors had priced in those companies until theyofficially released all earnings reports.
Leading businesses inthose sectors saw share prices increase last week, including Vietcombank (VCB),property firm Vingroup (VIC), insurer Bao Viet Holdings (BVH) and PetroVietnamGas Corporation (GAS).
VCB gained 7.4 percentafter five trading sessions, VIC was up 6.7 percent, BVH rose 4.5 percent andGAS advanced 2.8 percent.
However, marketvolatility increased in the last two sessions, in which the VN Indexencountered strong selling pressure when it reached the level of 1,055 points.
Tran Duc Anh, an analystat Bao Viet Securities Company, told tinnhanhchungkhoan.vn that sellingpressures were quite heavy last week, as seen by a record-high tradingliquidity and a mixed performance among all stocks.
Though the VN Index wasable to increase over five straight sessions, the main source of strength camefrom large-cap stocks, such as banks and energy firms, which was not a goodsignal for the market, he said.
“As the VN Index is quitevolatile at the moment, I am not too surprised that the index would decline tothe 1,000 point level in the next one or two weeks,” Anh said.
Chau Thien Truc Quynh,head of the brokerage division at Viet Capital Securities Company, told tinnhanhchungkhoan.vn that both stock indices were showing signs of weakening and becoming morevulnerable.
The benchmark VN Indexthis week will drop to test the level of 1,040 points, after struggling andsuffering from a technical correction, she said.
Sharing a similar marketoutlook, brokerage firms also forecast that the benchmark index would eitherdecline or move narrowly on high profit-taking pressures.
Bao Viet SecuritiesCompany said in its weekly report that investors began to trade morecautiously, as the market was more exposed to short-term risks, thus,increasing their profit-taking.
The company predictedthat the benchmark VN Index could move between 1,055 and 1,060 points thisweek, while Sai Gon-Hanoi Securities Company expected the index would movenarrowly, around the range of 1,040-1,060 points.-VNA
VNA
