Vietnam stocks to beat 1,000 points in Q4
Hanoi (VNS/VNA) - Vietnam’s benchmark VN-Index could breach the 1,000 point mark in the last quarter of the year after the Q3 corporate earnings season and with investors shifting 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 at
997.84 points.
Expectations for listed companies’
third-quarter earnings would support the domestic stock market in the short
term, BIDV Securities Corporation (BSC) said in its weekly report.
Investors have begun hunting for stocks in
sectors that are expected to produce positive earnings reports for the third
quarter of the year.
Banks and securities firms were also
attractive sectors to foreign investors.
Another factor that is expected to cushion
the stock market is the US-China trade talks, which opens on October 10.
In the last few weeks, both China and the
US have signalled their willingness to cool down the trade war by imposing
measures to boost bilateral trade.
This comes as good news amid worries
about a global economic recession.
There was also other good news that could
provide 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 the
implementation of public investment projects in the remaining months of the
year.
If the progress of public investment
projects was accelerated during the final months of the year, it
would benefit both the macro-economy and firms in the construction and
building material sectors, BSC forecast.
According to the General Statistics
Office, Vietnam’s total import and export turnover was estimated at 382.72
billion USD in the first nine months of this year. Of which,
exports reached 194.3 billion USD, up 8.2 percent over
the same period last year while imports stood at 188.42 billion USD, resulting in a trade
surplus of 5.9 billion USD.
Besides, the central banks had made great
efforts to keep the exchange rate between the Vietnamese dong and the US dollar stable amid the volatility of international financial
markets, enhancing the confidence of foreign investors and local exporters.
Technically, the VN-Index is now in the
resistance range of 995-1,005 points and if the benchmark can beat the 1,000
points this week, it means the VN-Index begins its uptrend, SHS forecast.
However, trading liquidity will be
essential 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 its
uptrend, SHS said./.