PetroVietnam Gas engineers at a facility (Photo: vietnamfinance.vn) Hanoi (VNS/VNA) - Vietnam’sbenchmark VN-Index could breach the 1,000 point mark in the last quarterof the year after the Q3 corporate earnings season and with investorsshifting attention towards firms with hopes for full-year earnings growth.
The benchmark VN-Index on the Ho Chí Minh Stock Exchange gained 0.72 percent to close last week at997.84 points.
Expectations for listed companies’third-quarter earnings would support the domestic stock market in the shortterm, BIDV Securities Corporation (BSC) said in its weekly report.
Investors have begun hunting for stocks insectors that are expected to produce positive earnings reports for the thirdquarter of the year.
Banks and securities firms were alsoattractive sectors to foreign investors.
Another factor that is expected to cushionthe stock market is the US-China trade talks, which opens on October 10.
In the last few weeks, both China and theUS have signalled their willingness to cool down the trade war by imposingmeasures to boost bilateral trade.
This comes as good news amid worriesabout a global economic recession.
There was also other good news that couldprovide a short term boost for the market, BSC said.
Last week, Prime Minister Nguyen Xuan Phuc urged ministries,sectors and government and local agencies to speed up theimplementation of public investment projects in the remaining months of theyear.
If the progress of public investmentprojects was accelerated during the final months of the year, itwould benefit both the macro-economy and firms in the construction andbuilding material sectors, BSC forecast.
According to the General StatisticsOffice, Vietnam’s total import and export turnover was estimated at 382.72billion USD in the first nine months of this year. Of which,exports reached 194.3 billion USD, up 8.2 percent overthe same period last year while imports stood at 188.42 billion USD, resulting in a tradesurplus of 5.9 billion USD.
Besides, the central banks had made greatefforts to keep the exchange rate between the Vietnamese dong and the US dollar stable amid the volatility of international financialmarkets, enhancing the confidence of foreign investors and local exporters.
Technically, the VN-Index is now in theresistance range of 995-1,005 points and if the benchmark can beat the 1,000points this week, it means the VN-Index begins its uptrend, SHS forecast.
However, trading liquidity will beessential as it determines how much investors are interested in the market.That is why trading liquidity will be the key for the VN-Index to maintain itsuptrend, SHS said./.
