Shares to gain on stable cash flow and Q1 positive earnings

Shares are forecast to rebound this week on the positive Q1 earning results and stable cash flow, analysts said.

Workers at a data centre of ICT group CMC Corporation in Ha Noi. CMC rose 4.1 per cent last week. — Photo CMC

The market benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) closed Friday at 1,248.53 points, falling by 1.69 per cent or 20.71 points.

The southern market index had gained 0.79 per cent last week.

An average of 787 million shares were traded on the southern exchange during each session last week, worth VND20.9 trillion (US$909.1 million).

According to SSI Securities Joint Stock Company (SSI), at the end of last week, the trading volume decreased by 6.56 per cent but still maintained well above the 50-day average. This signal showed that the cash flow into the market was still stable.

Thus, after falling back to the support area of ​​1,200 - 1,227 points and rebounding, the VN-Index showed a possibility of returning to the uptrend. The uptrend of the VN-Index will be strengthened when it surpasses the nearest resistance at 1,286 points.

Analysts from MB Securities Joint Stock Company (MBS) said that, at the end of last week, the market regained its momentum thanks to the boom in financial banking stocks and this uptrend spread across all other sectors.

This is the period in which stock prices, especially large-caps, were gaining thanks to positive first-quarter business results. This uptrend may continue in the first week of May 2021, MBS said.

Technically, with the current increased speed, the resistance level of 1,300 points can be soon conquered. However, correction to test support levels will occur before the VN-Index moves to new highs, with a short-term target of around 1,300 - 1,330 points, MBS said.

Sharing this same point of view, Viet Dragon Securities Joint Stock Company stated that, at the end of last week, VN-Index had recovered after a series of dropping sessions. This recovery had regained investors' confidence.

Meanwhile, most stocks have rebounded impressively, meaning that the market had entered a positive period.

Saigon-Hanoi Securities Joint Stock Company (SHS) said the VN-Index had witnessed the fourth consecutive week of gaining with a slight increase in liquidity. That showed the great interest of investors in the market during this period.

 

During last week, VN-Index struggled and shook strongly around 1,250 points, it said.

Last week, foreign investors net sold more than VND1.13 trillion on both exchanges. They net sold more than VND1.1 trillion on HOSE and more than VND25 billion on HNX.

Regarding the movements of the stock groups, the information technology group increased the most last week, mainly thanks to the rise of pillars such as FPT Corporation (FPT), rising 4.1 per cent, and CMC Group (CMG), gaining by 0.3 per cent.

They were followed by consumer services, mostly thanks to the increase of giant mobile retailer Mobile World Group (MWG), up 10.1 per cent.

Banking pillars also performed well, with Vietcombank (VCB) up 8 per cent, Saigon-Hanoi Bank (SHB) gaining 4.7 per cent, VPBank (VPB) rising 4.2 per cent, Asia Commercial Bank (ACB) going up 0.9 per cent, Military Bank (MBB) up 0.3 per cent, Techcombank (TCB) increasing by 0.1 per cent.

On the other side, petrol stocks dropped the most with losers including PetroVietnam Technical Services Corporation (PVS), dropping 9.4 per cent, Petrochemical and Bio-Fuel JSC (PVB) losing 8.6 per cent, Binh Son Refining and Petrochemical Co Ltd (BSR) losing 7.8 per cent, PV Oil (OIL) dropping 7.1 per cent, The PetroVietnam Drilling & Well Service Corporation (PVD) decreasing by 6.2 per cent.

“This week, VN-Index will continue to be supported by the 1,217-1,225 zone. If the index goes out of this zone, it might enter a dropping stage into deeper short-term support zone,” said Tran Xuan Bach, a stock analyst at Bao Viet Securities Co (BVSC).

“With today’s increasing momentum, the market might keep heading to challenge the resistance zone of 1,255- 1,268 points in the first session of this week. However, the index is likely to drop again when approaching this resistance zone.

“Investors should maintain the proportion of shares in the portfolio at 20-35 per cent of stocks. Prioritise holding medium-term positions. Those with plenty of cash can consider opening long positions with existing positions if the market retests the 1,200-1,220 zone next week,” BVSC said.

On the Ha Noi Stock Exchange, the HNX-Index lost by 1.18 per cent to close Friday at 283.63 points.

The index had lost 3.23 per cent last week.

An average of 160 million shares were traded on the northern exchange during each session last week, worth VND3 trillion. — VNS

 
 

Other News

.
Hanoi wants to tax abandoned villas
Hanoi wants to tax abandoned villas
BUSINESSicon  04/06/2021 

Hanoi has proposed to the Ministry of Finance the imposition of a tax or fine on owners of half-finished and abandoned townhouses and villas which were causing considerable waste of land resources.

VN may have to reduce renewable power in the next five years: energy institute
VN may have to reduce renewable power in the next five years: energy institute
BUSINESSicon  04/06/2021 

It is likely that Vietnam will have to reduce renewable energy sources in the next five years, as booming development in recent years was weighing on the power system, according to a recent report by the Institute of Energy.

Vietnam Airlines to sell 11 aircraft
Vietnam Airlines to sell 11 aircraft
BUSINESSicon  04/06/2021 

The national flag carrier Vietnam Airlines has announced the plan to sell 11 A321ceo aircraft made in 2004, 2007 and 2008.

Covid-19 pandemic helps clean up condotel market in Vietnam
Covid-19 pandemic helps clean up condotel market in Vietnam
BUSINESSicon  04/06/2021 

Severe economic impacts as a result of the pandemic have put more stress on the local condotel market.

IPs set up, but Vietnam still needs to do more to attract investors
IPs set up, but Vietnam still needs to do more to attract investors
BUSINESSicon  03/06/2021 

There were positive developments of industrial parks in Vietnam in the first five months of the year, but experts still say the country should do more to attract big investors.

CPI growth in Jan-May lowest in five years
CPI growth in Jan-May lowest in five years
BUSINESSicon  03/06/2021 

The country’s consumer price index (CPI) in the first five months of the year grew 1.29% year-on-year, the lowest for the period since 2016, according to the General Statistics Office.

Ministry of Finance proposes keeping fee reductions until end of 2021
Ministry of Finance proposes keeping fee reductions until end of 2021
BUSINESSicon  03/06/2021 

The Ministry of Finance has proposed extending the reduction periods of several fees beyond the current expiration date of June 30.

Nearly 60,000 businesses withdraw from market
Nearly 60,000 businesses withdraw from market
BUSINESSicon  03/06/2021 

The number of newly established enterprises is still increasing, but the rate of businesses withdrawing from the market has also risen.

LG pulls out of smartphone production in Vietnam from today
LG pulls out of smartphone production in Vietnam from today
BUSINESSicon  02/06/2021 

Today, June 1, is the last day that South Korean conglomerate LG produces smartphones in Vietnam before it focuses on making home appliances only.

VIETNAM BUSINESS NEWS JUNE 3
VIETNAM BUSINESS NEWS JUNE 3
BUSINESSicon  03/06/2021 

 Stock market hits historic peaks

Investment into local start-ups expected to rise this year
Investment into local start-ups expected to rise this year
BUSINESSicon  01/06/2021 

The investment capital into Vietnamese start-ups this year would see a breakthrough despite a year-on-year decrease of 48 per cent in 2020 to reach US$451 million.

Businesses seek sources to buy vaccines for their workers
Businesses seek sources to buy vaccines for their workers
FEATUREicon  02/06/2021 

The electronics, textile and garment, footwear, wooden furniture and dairy sectors have proposed that the Government allow them to seek vaccine sources and pay for vaccinations at their enterprises so they can maintain production.

Vaccines yet to come, but biotech share prices escalate
Vaccines yet to come, but biotech share prices escalate
BUSINESSicon  02/06/2021 

Biotech shares, especially the shares of vaccine producers, are being sought by investors.

Selling farm produce online: e-commerce sites compete to attract farmers
Selling farm produce online: e-commerce sites compete to attract farmers
BUSINESSicon  02/06/2021 

For years, farmers had to rely on the wholesale distribution method and could not sell products directly to consumers. But that has changed in recent years.

Money flows strongly into Vietnam’s stock market
Money flows strongly into Vietnam’s stock market
BUSINESSicon  02/06/2021 

The flow of money from several hundred thousand newly-opened accounts into the stock market has expanded the pockets of Vietnamese billionaires by hundreds of millions of US dollars in a short time.

Difficulties facing the country eased by corporate social responsibility activities
Difficulties facing the country eased by corporate social responsibility activities
FEATUREicon  03/06/2021 

After the Covid-19 vaccine fund was established, Vietnamese businesses contributed hundreds of billions of Vietnamese dong. Many companies said they are willing to vaccinate their employees and customers with their own sources.

New master plan for seaports needed to further boost economic development
New master plan for seaports needed to further boost economic development
BUSINESSicon  01/06/2021 

A new master plan for seaports is needed to further boost the country’s socio-economic development in the rapid international integration process, experts have said.

Realty tax needs revamp to ensure fairness
Realty tax needs revamp to ensure fairness
BUSINESSicon  31/05/2021 

Realty tax not only creates sources of collection for the State budget but also is a policy able to spur growth and reduce bribery related to land. Vietnam does have realty tax.

Many companies manufacture components for Samsung, Foxconn resume operations
Many companies manufacture components for Samsung, Foxconn resume operations
BUSINESSicon  01/06/2021 

The Management Board of Industrial Parks of Bac Giang Province has allowed nine enterprises in Van Trung, Dinh Tram and Quang Chau industrial parks in Viet Yen district, Vietnam’s largest epidemic hotspot, to resume operations.

VIETNAM BUSINESS NEWS JUNE 1
VIETNAM BUSINESS NEWS JUNE 1
BUSINESSicon  01/06/2021 

Shares gain on buoyant banking stocks

 
 
 
Leave your comment on an article

OR QUICK LOGIN