Market will continue to breach new highs, but investors should be more cautious: experts

The market witnessed strong buying interest last week and analysts from many securities firms expect indices to continue to hit new highs, but have warned investors to be cautious.

Market will continue to breach new highs, but investors should be more cautious: experts hinh anh 1

Statues of bear and bull market ỉn front of the Ho Chi Minh Stock Exchange (HoSE)'s building. — (Photo vneconomy.vn)

The benchmark VN-Index broke the historic peak of the 1,300 point-level on May 25, boosted by bank stocks. The index kept breaching new highs and finished the week at 1,320.46 points. The HNX-Index ended on May 28 at 310.46 points.

That was the highest close for both benchmarks in history.

For the week, the VN-Index gained 1.73 percent, while the HNX-Index rose by 3.37 percent.

Market liquidity also broke the record level of 31 trillion VND (1.35 billion USD). Of which 24.8 trillion VND (1.1 billion USD) was poured into the Ho Chi Minh Stock Exchange (HoSE), causing overloading issues in recent sessions.

According to MB Securities JSC, with the current strong cash inflows, the market is likely to extend its rally to higher levels.

Analysts from SSI Securities Corporation (SSI) were also optimistic about the market this week as there are signs supporting the current upward trend of the VN-Index.

“There is a possibility that the index will continue to edge higher to 1,350 - 1,400 points, so corrections in the short term, if they happen, will create chances for investors to increase stock proportion in their portfolios,” SSI added.

On the technical front, BOS Securities Corporation said that the VN-Index resurged after testing the 1,300 point-level again. The strong cash flows are the market’s driving force and technical indicators also support the bull market.

Therefore, the VN-Index may keep its upward trend in the near future and head toward the next resistance zone of 1,340 points, BOS forecasts.

 

Meanwhile, some securities firms have a more cautious view of the market this week.

According to Saigon - Hanoi Securities JSC, the market recorded a fourth straight weekly gain on strong cash inflows and investors’ bullish sentiment. But as the VN-Index closed the week above 1,320 points, it can be considered as a strong tug-of-war between buyers and sellers in the near future.

The area of 1,320 - 1,325 points is vulnerable territory to the VN-Index, so investors should be more careful this week, SHS suggests.

Analysts from SHS expect fluctuations might reappear when rising pressure from profit-taking activities weigh down the market.

Last week, bank stocks led the market and gained 5.8 percent in market capitalisation. Many stocks rose than 1 percent, such as VPBank (VPB), Vietcombank (VCB), MBBank (MBB), Asia Commercial Bank (ACB), Vietinbank (CTG) and Techcombank (TCB).

It was followed by stocks in the material sector, up 4.8 percent in market capitalisation due to pillar stocks like Hoa Phat Group (HPG), Nam Kim Steel JSC (NKG) and Hoa Sen Group (HSG).

Other stocks from the healthcare and pharmaceutical sector, information technology and the utilities sector also climbed more than 1 percent in market capitalisation.

However, foreign investors were still net sellers last week, with a net sold value of 270 billion VND (11.7 million USD). The amount was much lower than that of the last few weeks, which witnessed a net sold value of trillions of dong./.VNS

Vietnam stock market among world’s best performers in Jan-May

Vietnam stock market among world’s best performers in Jan-May

Vietnam’s stock market remained among the world’s best performers in the first five months as the benchmark Vn-Index rose by 16.31% against early 2021 to 1,283.93 points at the close on May 21, according to StockQ.

 
 

Other News

.
VN stock market hits record, big names rise
VN stock market hits record, big names rise
FEATUREicon  14/07/2021 

The Vietnamese stock market in the first half (H1) of 2021 broke many records.

Aviation sector eyes recovery in 2023-24
Aviation sector eyes recovery in 2023-24
BUSINESSicon  14/07/2021 

Vietnam's aviation market is hoped to recover in 2023-24, according to a Vietnam Airlines' representative.

Exporters face slew of difficulties due to COVID
Exporters face slew of difficulties due to COVID
BUSINESSicon  14/07/2021 

Though exports remain strong, several sectors face difficulties due to the COVID-19 pandemic and require support from the Government if they are to sustain the growth, experts said.

Ministry proposes reduction in insurance deposits for travel firms
Ministry proposes reduction in insurance deposits for travel firms
BUSINESSicon  14/07/2021 

The Ministry of Culture, Sports and Tourism wants to reduce the value of insurance deposits by 80 per cent to help travel companies that are struggling because of COVID-19.

Mekong Delta: attractive destination for renewable energy development
Mekong Delta: attractive destination for renewable energy development
BUSINESSicon  14/07/2021 

Taking advantage of its natural conditions and investment attraction policies, the Cuu Long (Mekong) Delta has become a destination for investors in renewable energy projects.

Banks agree to reduce lending interest rates from July
Banks agree to reduce lending interest rates from July
BUSINESSicon  14/07/2021 

Commercial banks have agreed to slash the lending interest rate in order to help businesses and people overcome the difficulties caused by the Covid-19 crisis.

Industrial real estate market hit hard by fourth Covid wave
Industrial real estate market hit hard by fourth Covid wave
FEATUREicon  14/07/2021 

The latest Covid-19 outbreak, which began in late April, has slowed down the industrial real estate market. There have been only small-scale projects and no large scale one announced.

Banks lending big to keep agriculture sector ticking
Banks lending big to keep agriculture sector ticking
BUSINESSicon  14/07/2021 

According to the State Bank of Vietnam’s department of credit for economic sectors, as of April credit injected into rural and agricultural development had reached VND2.3 quadrillion ($100 billion), or 24.6% of the banking sector’s total loans.

IFC helps boost green credit in Vietnam
IFC helps boost green credit in Vietnam
BUSINESSicon  14/07/2021 

The International Finance Corporation (IFC) has provided a 100 million USD long-term loan for the Orient Commercial Joint Stock Bank (OCB) to increase the private sector’s contributions to green and sustainable growth in Vietnam.

Hotels as 5-star quarantine sites: new way to make profit
Hotels as 5-star quarantine sites: new way to make profit
FEATUREicon  14/07/2021 

For over the past year, one of the largest 5-star hotels in Ha Long City, Quang Ninh Province, has been used as a quarantine site for visitors who enter Vietnam by air. 

Businesses in HCM City, Long An suspend operations to prevent spread of COVID-19
Businesses in HCM City, Long An suspend operations to prevent spread of COVID-19
BUSINESSicon  13/07/2021 

Authorities in HCM City and Long An Province have suspended operations of a number of businesses so that epidemic prevention measures can be carried out.

Shares nosedive on panic sell-off
Shares nosedive on panic sell-off
BUSINESSicon  13/07/2021 

Vietnamese shares plunged on Monday as panic selling flooded the market, following surging COVID-19 cases, reinforcing fears of further economic pain from restrictions induced by the virus.

Vietnam is second-fastest growing stock market with multi-billion dollar records: report
Vietnam is second-fastest growing stock market with multi-billion dollar records: report
BUSINESSicon  13/07/2021 

The State Securities Commission (SSC) has reported that Vietnam was the second-fastest growing stock market in the first half of the year, despite the fourth Covid-19 outbreak.

Vietnam Airlines resumes several international routes as of mid-July
Vietnam Airlines resumes several international routes as of mid-July
BUSINESSicon  12/07/2021 

Vietnam Airlines announced on July 12 that it will reopen international routes from the country to a number of destinations in Asia, Europe, and Australia between July and October.

Banks make huge profits, hope interest rate reductions are far off
Banks make huge profits, hope interest rate reductions are far off
FEATUREicon  13/07/2021 

Banks have reported huge profits for Q2 and H1 due to high credit growth rates and lending interest rates, while capital mobilization cost has been low.

GDP still grows in midst of tribulations among the poor, businesses
GDP still grows in midst of tribulations among the poor, businesses
FEATUREicon  13/07/2021 

Do GDP calculations take into account the fact that a taxi driver gets poorer by 10 times more as he has to spend VND100,000 on nCoV testing a day, and informal workers have no access to cheap meals in HCM City?

Coal conundrum ahead forces Vietnam to rethink priorities
Coal conundrum ahead forces Vietnam to rethink priorities
BUSINESSicon  12/07/2021 

While the pressure on the environment and issues like climate change are increasing, it remains difficult for Vietnamese companies and the government to turn away from fossil fuels completely.

Debt under control thanks to prudent and effective actions
Debt under control thanks to prudent and effective actions
BUSINESSicon  12/07/2021 

Effective usage of the state budget has helped Vietnam succeed in bringing public debt under control since 2016, ensuring national financial security.

VIETNAM BUSINESS NEWS JULY 13
VIETNAM BUSINESS NEWS JULY 13
BUSINESSicon  13/07/2021 

Khanh Hoa proposes developing Van Phong-Nha Trang expy project

Vietnam spends nearly $2 billion importing meat
Vietnam spends nearly $2 billion importing meat
BUSINESSicon  12/07/2021 

Vietnam's total import turnover of livestock products in the first six months of 2021 is estimated at US$1.82 billion, a year-on-year increase of 8.9 per cent.

 
 
 
Leave your comment on an article

OR QUICK LOGIN