HCMC – With two falling and three rising sessions, the VN-Index finished last week up 1.4% and stayed above 450 points. Given the strong rally last Friday, brokers expect that the market is going to have another short recovery.
In the first week of applying a longer trading time, liquidity of the southern market declined. The market’s average daily trading volume was 42 million shares worth VND1.07 trillion, falling 21% and 23% respectively from a week earlier.
However, the market’s liquidity on Friday suddenly improved as both trading volume and value increased by 30% to 49.8 million shares and VND1.28 trillion. Another positive sign in the session was blue-chips of VCB, HAG, HPG, and SSI made the biggest positive contribution to the VN-Index.
After the four earlier sessions moving in narrow range below 450 points, the VN-Index last Friday shot up by 8.06 points to 457.58.
Explaining the Friday rally, an expert of HCMC Securities Corp. (HSC) said there were several possible factors behind this, including speculation that the uncertainty about Circular 13 would come to an end and news that GDP is well on track to generate stronger-than-expected full-year growth of 6.7% or so.
“Neither piece of news was unexpected but at the same time investors who have been waiting for good news or at least hoping for an end to the recent uncertainty have certainly found it,” HSC said. The broker also said, “Given the strong level of bids at the close we suggest that next week may well see further gains, meaning that the market has already bottomed for now.”
Meanwhile, Beta Securities Co. said the market had yet to have any supporting news and capital flow was still restricted. “In our opinion, once the VN-Index breaks the resistance level of 470 points and the HNX-Index breaks the 140-points level, the market is seen cruising through the downward trend and entering a new bout of rallies,” the company said in its report. Therefore, Beta expects the VN-Index would slightly increase or move sideway this week.
In contrast to cautious local investor sentiment, foreign investors continued buying into shares last week as their net buying value was VND379 billion, up 45% from the previous week. The buying of blue-chips at low prices can make the third quarter financial reports of foreign institutions better, but it also helped keep the market from falling deeply, Vietnam International Securities Co. (VIS) said.
The broker commented that the 443-445 points area would witness strong buying, and the 465-470 points area would witness strong selling from short-term investors. Therefore, according to VIS, if there is no supporting news, the VN-Index would move between 445 and 467 points this week.
Similar to the southern bourse, Hanoi’s market also witnessed a strong increasing session last Friday as the index rose 4.45 points to 132.85. The level was also 1.3% higher than the previous week.
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