Market’s uptrend may weaken after five consecutive gaining weeks

Although Vietnam's stock market has experienced five consecutive weeks of gains with record-high liquidity, analysts said investors’ caution and the uptrend would weaken as the VN-Index approaches the resistance level of 1,030 points.

Headquarters of Nam Kim Group (NKG). Nam Kim Group (NKG) rose 7 per cent last week. — Photo cafef.vn

The benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) was up 0.17 per cent to close Friday at 1,021.49 points.

The index gained 1.12 per cent last week.

An average of 574.6 million shares were traded on the southern exchange during each session last week, worth VND11.6 trillion (US$499.7 million).

Analysts from SSI Securities Corporation (SSI) said the market's upturn momentum was weakening with the VN-Index approaching the resistance level of 1,030 points.

“The inflow of capital from large-cap stocks to mid-cap stocks may be a warning sign of increasing risk. However, in the short term, it is likely that the VN-Index will continue going up, targeting the zone of 1,030 - 1,040 points,” SSI said.

According to MB Securities Co (MBS), selling pressure mainly focused on blue-chips but domestic cash flow absorbed this selling volume well.

“MBS believes the market is likely to fluctuate when the VN-Index approaches 1,030 points,” MBS said.

Saigon-Hanoi Securities Joint Stock Company (SHS) said the market had a fifth consecutive gaining week with a slight increase in trading volume compared to the previous week, which showed some caution.

“The VN-Index closed last week in a strong resistance zone of 1,020-1,030 points, which were the peak of October 2018 and of November 2019, thus profit-taking pressure will become stronger this week, which means a correction may happen soon,” SHS said.

Foreign investors net sold 19.3 million shares, equivalent to a net selling value of VND36.8 billion on the whole market last week. Notably on HoSE, foreign investors net sold VND75 billion, down 71 per cent from the previous week.

Construction materials stocks rose the most last week, mainly thanks to Hoa Phat Group (HPG), increasing 1.9 per cent, and Nam Kim Group (NKG) jumping 7 per cent.

It was followed by the community utility group, typically PetroVietnam Gas JSC (GAS), rising by 2.4 per cent and PVPower (POW), increasing by 12.7 per cent.

Consumer goods ranked third with Masan Group (MSN) growing 2.7 per cent, Sabeco (SAB) 5.5 per cent and Hanoi Beer Alcohol And Beverage Joint Stock Corporation (BHN) up 4.4 per cent.

 

Securities stocks also increased strongly with SSI Securities Incorporation (SSI) gaining 3.6 per cent, VNDirect Securities Co (VND) rising 2.7 per cent, Viet Capital Incorporation (VCI) growing 2.2 per cent and Saigon-Hanoi Securities Co (SHS) up 2.1 per cent.

SHS forecasts that this week, the VN-Index may correct again with profit-taking pressure appearing in the resistance zone of 1,020-1,030 points.

SHS recommends investors with a high proportion of stocks lock in profits at the resistance zone of 1,020-1,030 points. Investors with a high proportion of cash can watch for adjustments around the 990-1,000 point range to bottom fish.

According to Tran Xuan Bach, a stock analyst at Bao Viet Securities Co, the VN-Index is heading toward the strong resistance zone 1,028-1,035 points.

“However, we assess that this resistance may pose correction and volatility pressure to the index. Adversely, resistance 985-990 points will be a determinant to the index’s uptrend in the short term,” he said.

“The market will continually experience a wide divergence among stock sectors. Capital starts to flow into stock sectors that have yet to rise significantly to seek for profit,” he said.

“Stock exposure should be maintained at 50 per cent. Investors should hold off on opening new longing positions as the market is approaching sensitive resistance zones. Investors with high stock exposure may consider lowering the exposure with short-term positions when the index approaches 1,028-1,035 points,” he said.

On the Ha Noi Stock Exchange, the HNX-Index rose 0.33 per cent to close Friday at 152.48 points.

The northern index had gained 2.91 per cent last week.

Some 71.9 million shares were traded on the northern exchange last week, worth VND1 trillion.

According to data from the Securities Depository Center (VSD), domestic individual investors opened a record 41,080 trading accounts in November, up 4,734 compared to October. Since early this year, individual investors have opened a total of 329,452 accounts, 75.4 per cent higher than the number of accounts opened in 2019.

The number of accounts opened by domestic institutional investors rose from October, reaching 123, the highest since December 2017. So far this year, domestic institutional investors have opened nearly 964 accounts, higher than that of 2019 of 821 accounts.

Generally, the number of new accounts opened by domestic investors in November reached 41,203 accounts, up 13 per cent compared to October. So far this year, domestic investors have opened more than 2.67 million trading accounts. — VNS

 
 

Other News

.
Businesses wait for bank debts rescheduling
Businesses wait for bank debts rescheduling
BUSINESSicon  15/09/2021 

A week after the State Bank of Vietnam issued Circular 14 on debt rescheduling to alleviate the difficulties faced by businesses due to the COVID-19...

When the two 'locomotives' restart at the same time
When the two 'locomotives' restart at the same time
FEATUREicon  14/09/2021 

Contributing about 45% of the country’s GDP, HCM City and Hanoi are considered the two engines pulling the national economy. Both must be healthy and go hand in hand to revive the pandemic-hit economy.

Post-pandemic economic recovery plans in the pipeline
Post-pandemic economic recovery plans in the pipeline
BUSINESSicon  14/09/2021 

The Ministry of Planning and Investment (MPI) plans to submit its economic recovery project to competent authorities for approval in October, with the 2022 to 2023 period to be identified as the ideal time for recovery efforts.

Consumers warned against buying Chinese mooncakes with no clear origin, quality
Consumers warned against buying Chinese mooncakes with no clear origin, quality
BUSINESSicon  15/09/2021 

Mooncakes with no clear information about origin, manufacturer names or quality are being sold at surprisingly low prices. Consumers have been advised to be cautious when buying mooncakes online.

Plan to re-open Vietnam’s aviation market revealed
Plan to re-open Vietnam’s aviation market revealed
BUSINESSicon  14/09/2021 

The plan to restore the domestic air transport market, developed by the Civil Aviation Authority of Vietnam (CAAV), has been divided into three phases.

VIETNAM BUSINESS NEWS SEPTEMBER 14
VIETNAM BUSINESS NEWS SEPTEMBER 14
BUSINESSicon  14/09/2021 

Vietnam needs additional 1 million ICT personnel by 2030

Vietnamese billionaire enters $10 billion pork, animal feed market
Vietnamese billionaire enters $10 billion pork, animal feed market
BUSINESSicon  14/09/2021 

After successfully entering the fish sauce market, billionaire Nguyen Dang Quang has invested in two segments with high potential: the US$10 billion pork and animal feed market.

Decree for Fintech sandbox to be submitted in Q4
Decree for Fintech sandbox to be submitted in Q4
BUSINESSicon  14/09/2021 

The Government has issued a resolution to create a sandbox for financial technology (Fintech) in the country’s banking sector.

Over 60% of US firms will not consider shifting production out of Vietnam
Over 60% of US firms will not consider shifting production out of Vietnam
BUSINESSicon  13/09/2021 

A flash survey by the American Chamber of Commerce in Vietnam revealed that while many US companies' operations in Vietnam have been affected significantly by the pandemic, the majority do not want to shift production out of Vietnam.

Hao Hao instant noodles in EU: supplier to company used EO to sterilize materials
Hao Hao instant noodles in EU: supplier to company used EO to sterilize materials
BUSINESSicon  14/09/2021 

Acecook Vietnam, after checking up on material suppliers, has found that a supplier used Ethylene oxide (EO) to sterilize some materials.

VIETNAM BUSINESS NEWS SEPTEMBER 13
VIETNAM BUSINESS NEWS SEPTEMBER 13
BUSINESSicon  13/09/2021 

Banks on road for digital transformation

Fish harvesting teams need to be set up amid pandemic
Fish harvesting teams need to be set up amid pandemic
BUSINESSicon  13/09/2021 

Localities should establish groups and teams for harvesting fish that could facilitate the issuance of travel permits in groups instead of individual travel permits amid the COVID-19 pandemic.

Cold storage, sweet but high-hanging fruit
Cold storage, sweet but high-hanging fruit
BUSINESSicon  13/09/2021 

The trend of shoppers going online en masse is driving demand for cold storage facilities in most countries, with Vietnam seemingly among those with a severe short supply.

Vietnamese keen on cryptocurrencies: surveys
Vietnamese keen on cryptocurrencies: surveys
BUSINESSicon  13/09/2021 

According to a survey by Chainalysis, Vietnam's cryptocurrency market has grown by 881 percent year-on-year, ranking first out of 154 countries in the "Global Cryptocurrency Adoption Index 2021" ranking.

Agricultural by-products: a billion-dollar 'gold mine' in Vietnam
Agricultural by-products: a billion-dollar 'gold mine' in Vietnam
FEATUREicon  13/09/2021 

Agricultural by-products are called the "gold mine" of the Vietnam agricultural industry with up to 156 million tons per year. But these lucrative sources have been neglected for many years.

Hanoi woman earns over $14 million from writing apps for Google and Apple
Hanoi woman earns over $14 million from writing apps for Google and Apple
BUSINESSicon  13/09/2021 

A 29-year-old Hanoi woman earned VND30 billion (nearly $14.5 million) a year by writing software for Google Play and App Store, paying tax of VND23.4 billion (over $1 million).

VIETNAM BUSINESS NEWS SEPTEMBER 12
VIETNAM BUSINESS NEWS SEPTEMBER 12
BUSINESSicon  12/09/2021 

Vietnam continues to be attractive investment destination: HSBC

NA Chairman witnesses signing of deals between Vietnamese and European firms
NA Chairman witnesses signing of deals between Vietnamese and European firms
BUSINESSicon  12/09/2021 

NA Chairman Vuong Dinh Hue witnessed the handover of donations of medical supplies to Vietnam and the signing of several agreements between Vietnamese and European businesses at a ceremony held in Helsinki on September 11.

Real estate remains attractive to foreign investors
Real estate remains attractive to foreign investors
BUSINESSicon  11/09/2021 

With a total registered capital of nearly US$1.6 billion during January-August, real estate continued to rank third among 18 sectors attracting foreign direct investment (FDI).

Government issues resolution to support businesses
Government issues resolution to support businesses
BUSINESSicon  11/09/2021 

Facing the decline in resilience of businesses, cooperatives and business households in the rapidly spreading COVID-19 pandemic, the Government has issued Resolution No 105/NQ-CP on supporting businesses.

 
 
 
Leave your comment on an article

OR QUICK LOGIN