Share set to increase, facing corrections

Vietnamese stock market is forecast to move higher this week, where correction and volatility is expected.

A steel production line of Hoa Phat Group (HPG). HPG rose 16 per cent last week. — Photo hoaphat.com.vn

The benchmark VN-Index on the Ho Chi Minh Stock Exchange (HOSE) decreased 1.16 per cent to end at 852.74 points.

The index had gained 3.1 per cent last week.

An average of 308.2 million shares were traded on the southern exchange during each session last week, worth VND5.5 trillion.

“The VN-Index is forecast to head toward resistance 860-880 points early next week, where there could be adjustments,” said Nguyen Duc Hoang, market strategy analyst at Bao Viet Securities Company (BVSC).

“The market is also expected to fluctuate widely next week with the review session of EFTs tracking MSCI,” Hoang said.

“Foreign investors have also balanced out their net buying and selling activities recently,” he added.

“Stock exposure should be maintained at 30-40 per cent of the portfolio. Investors should continue to hold current positions and hold off on buying new stocks. They should consider selling short-term positions at the resistance 860-880 points zone,” he said.

Since the beginning of April, the VN-Index had increased by 30 per cent, said Nguyen Hong Khanh, head of market analysis at Viet Nam International Securities Joint Stock Company (VIS).

“It can be seen that VN-Index recorded strong gains during the first four sessions last week but the cash flow was gradually weakened. The collapse in the last session of the week was inevitable when the ability to absorb stocks decreased while profit-taking pressure increased,” Khanh said.

 

“Investors wait for some notable events on the international market this week, including rising conflicts between the US and China over Hong Kong and Taiwan issues. The US has just passed a ban on Chinese companies from listing shares on the US exchanges or raising money from US investors if they do not obey Washington's audit standards,” Khanh said.

According to Ngo Quoc Hung, professional senior market researcher, Market Strategy Division, MBS Securities, the domestic stock market had witnessed the third increasing week in a row.

“A new large cash flow has been poured into the market thanks to the new trading accounts opened in March and April. Therefore, it is likely that the market will continue going up this week but the profit-taking pressure will increase when the market enters the area of 863 points,” Hung said.

“The VN-Index increased by 3.11 per cent last week but the liquidity decreased in most index groups, showing that investors have become more cautious,” Hung said.

“In Q1, most of the industries were strongly affected by the coronavirus crisis, with the most significant ones being retail, aviation, textile, fishery, transportation and banking,” said Nguyen Hong Khanh, head of market analysis at Viet Nam International Securities Joint Stock Company (VIS).

Last week, the banking group was the main pillar leading the market up. Most stocks in the industry marked a successful trading week such as Vietcombank (VCB), Vietinbank (CTG), Techcombank (TCB) and Bank for Investment and Development of Viet Nam (BID).

The steel group also outperformed last week. Big players of Nam Kim Group (NKG), Hoa Phat Group (HPG) and Hoa Sen Group (HSG) made impressive breakthroughs. HPG led the way with a strong increase of 16 per cent, HSG recorded an increase of nearly 10 per cent.

The minor HNX-Index on the Ha Noi Stock Exchange (HNX) rose 1.23 per cent to close Friday at 107.04 points.

The northern market index had lost a total of 1.82 per cent last week.

An average of 62.9 million shares were traded on the exchange during each session last week, worth VND640 billion. — VNS

 
 

Other News

.
Pandemic speeds up digitisation, technology transformation
Pandemic speeds up digitisation, technology transformation
BUSINESSicon  18/09/2021 

The COVID-19 pandemic does not slow down technological transformation or digitisation, but in fact speeds them up, companies said.

Foreign investment into Vietnamese start-ups expected to rise despite COVID-19
Foreign investment into Vietnamese start-ups expected to rise despite COVID-19
BUSINESSicon  17/09/2021 

Foreign investment into Vietnamese startups is predicted to increase although the COVID-19 pandemic has left negative impacts on the economy, according to experts.

Businesses propose new regulations to replace Directives 15, 16
Businesses propose new regulations to replace Directives 15, 16
FEATUREicon  18/09/2021 

Associations of businesses have asked the Prime Minister to issue new directives on pandemic prevention and control to replace Directives 15 and 16 with regulations that fit the new circumstances.

Pandemic will continue to hit State budget revenue in the coming months
Pandemic will continue to hit State budget revenue in the coming months
BUSINESSicon  17/09/2021 

The Ministry of Finance (MoF) is concerned the COVID-19 pandemic would continue to affect State budget revenue in the coming months.

VIETNAM BUSINESS NEWS SEPTEMBER 17
VIETNAM BUSINESS NEWS SEPTEMBER 17
BUSINESSicon  17/09/2021 

Vietcombank to spend $3.6m to buy Vietnam Airlines’ new shares

American investor earns VND1,000 billion from Vietnam’s hot stock
American investor earns VND1,000 billion from Vietnam’s hot stock
BUSINESSicon  17/09/2021 

The largest private equity fund management company in the US has just sold Vinhomes shares and made a profit of more than VND1,000 billion (nearly US$ 43.5 million) after a year.

Vietnam’s auto market hits bottom
Vietnam’s auto market hits bottom
BUSINESSicon  17/09/2021 

Although car manufacturers have cut prices deeply to stimulate demand, the Vietnamese auto market witnessed a record decrease in monthly sales over the past five years when fewer than 9,000 cars were sold in August 2021.

E-commerce turns small businesses into big cross-border traders
E-commerce turns small businesses into big cross-border traders
BUSINESSicon  17/09/2021 

Many business owners have found major partners after joining international B2B marketplaces.

Airfare scheme may deprive 43 million passengers of opportunity to fly at low cost
Airfare scheme may deprive 43 million passengers of opportunity to fly at low cost
FEATUREicon  17/09/2021 

If a proposed airfare scheme is applied, the fees will make it impossible for low-income earners to travel by air.

FDI in Vietnam, resilience during challenging time
FDI in Vietnam, resilience during challenging time
BUSINESSicon  16/09/2021 

Vietnam’s commitment for success of FDI companies and foreign investors can be seen through the Government’s efforts to improve the investment climate over the last few years.

VIETNAM BUSINESS NEWS SEPTEMBER 16
VIETNAM BUSINESS NEWS SEPTEMBER 16
BUSINESSicon  16/09/2021 

Foreign investors maintain confidence in Vietnam’s economy

Hanoi office market will see large changes after pandemic
Hanoi office market will see large changes after pandemic
BUSINESSicon  16/09/2021 

The office market in Hanoi is experiencing many changes amid the COVID-19 pandemic in terms of rental prices, occupational profile and new demands for office spaces, according to Savills Vietnam.

GDP to reach 3.5-4 per cent this year
GDP to reach 3.5-4 per cent this year
BUSINESSicon  16/09/2021 

The country’s GDP this year is expected to reach 3.5-4 per cent if the COVID-19 pandemic is controlled in September and a 'new normal' achieved from the fourth quarter, said Minister of Planning and Investment Nguyen Chi Dung.

Vietnam’s economy will recover after lockdown is lifted: WB economist
Vietnam’s economy will recover after lockdown is lifted: WB economist
BUSINESSicon  15/09/2021 

Vietnam’s economy will recover on the back of solid growth achieved in the first half of 2021 after the lockdown is lifted, Dorsati Madani, Senior Economist at the World Bank (WB) Vietnam, has said.

Fruitful results in 30-year dialogue relations and a new chapter for 18-year CABIS
Fruitful results in 30-year dialogue relations and a new chapter for 18-year CABIS
BUSINESSicon  16/09/2021 

The 18th China-ASEAN Business and Investment Summit (CABIS) was held on September 10-11 in Nanning, Guangxi, China.

HCM City seeks VND17.2trn from state budget for key urban projects
HCM City seeks VND17.2trn from state budget for key urban projects
BUSINESSicon  15/09/2021 

HCM City has sent an urgent request to the Ministry of Planning and Investment for a VND17.2trn (USD753m) state fund allocation during the 2021-2025 period to complete three key projects in the city.

Many Vietnamese seafood exporters are not subject to US anti-dumping tariffs
Many Vietnamese seafood exporters are not subject to US anti-dumping tariffs
BUSINESSicon  15/09/2021 

The US Department of Commerce (DOC) has announced the preliminary results of the 17th period of review (POR17) for the period from August 1, 2019 to July 31, 2020, regarding Vietnam’s tra and basa fish (pangasius) exported to the US.

Vietnam builds ‘fortress’ to fight pandemic, not the economy
Vietnam builds ‘fortress’ to fight pandemic, not the economy
FEATUREicon  18/09/2021 

The economy reflects the operation of all 13 southern cities and provinces, and different behaviors of each is hindering economic development.

Local specialties plummeting in price
Local specialties plummeting in price
FEATUREicon  16/09/2021 

While Phu Yen lobster prices are surging, VND100,000 per kilogram more expensive than the previous crop, other aquatic specialties including ca lang (hemibagrus) and hau sua (oyster milk) have seen prices plummet, causing big losses for farmers.

Hope rests on economic recovery plan
Hope rests on economic recovery plan
FEATUREicon  16/09/2021 

Hopes for the ease of social distancing measures and recovery of the economy are rising along with the decrease in the nber of new cases.

 
 
 
Leave your comment on an article

OR QUICK LOGIN