HCMC – Stock brokers hold a downbeat view over the local stock market this week, saying the market would suffer a mild decline as profit-taking pressure might increase at around the 460-point level. The VN-Index is expected to move within a narrow range between 445 and 465 points.
The market corrected in the last session of last week after three rising days in a row. Throughout the week, however, the VN-Index gained 7.55 points, or 1.67%, against the previous week to end at 459.26.
Closing the week, the number of advancers was still modest with 53 stocks rising compared to 189 others losing ground. Liquidity remained low, averaging out at 37.9 million shares worth VND975 billion per session, rising by 1.9% in volume but dropping by 3.4% in value.
APEC Securities Co. noted that large caps rallied sharply during the week due to high demands of foreign investors while penny stocks kept moving down.
“Although the U.S. market enjoyed another rising week, the local market stayed dull as investors were waiting for financial reports of listed firms in the third quarter. They were also pessimistic at declines of most small and medium caps last week,” APEC said.
APEC estimated that the market would not escape the narrow range between 445 and 465 points this week. “Investors should acquire stocks with good fundamentals if the VN-Index drops to below 450 points,” it suggested.
Vietnam International Securities Co. (VIS) said complicated developments on the world market were not strong enough to support investor sentiment last week. “Buyers only accepted low prices given lack of supporting news and cash flow signs. It is notable that trading volume is rather low recently, suggesting that supplies of cheap shares are running dry,” VIS said.
Foreign participation, meanwhile, surged strongly against previous weeks and the investors were net buyers for around 17.8 million shares worth VND703 billion.
“Foreigners now play an important role in movement of the VN-Index and will help prevent a sharp downturn within the next few days,” VIS said.
HCMC Securities Corp. (HSC) said the VN-Index, nevertheless, gained some eight points last week and sentiment seems to have improved somewhat, helped by the very active buying by some foreigner investors. “The general feeling is that once support from this side subsides, prices might fall back again and therefore we see short-term players taking profit at levels above 460 points,”
“We do not expect sentiment to change dramatically over the coming week. A number of large caps will continue to do well, while the overall picture is likely to show little excitement,” HSC added.
The Hanoi market performed worse than its southern counterpart with three losing sessions. The HNX-Index lost 4.12 points, or 3.27%, from the week earlier to close at 121.69. The market’s liquidity improved slightly with the average daily volume of 30.2 million shares worth VND692 billion, increasing by 6.3% and 4.8% against the previous week respectively. VIS predicted the market would move flat again this week. LienVietBank,
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