Further stock losses this week - brokerages
HCMC – Securities enterprises have forecast the market will continue falling or seesawing strongly this week.
According to FPT Securities Company, exchange traded funds (ETFs) finished their portfolio restructuring last week, signaling a negative outlook for the VN-Index. Therefore, investors should take caution and keep a close watch on earnings results in the first quarter and annual general meetings.
Viet Capital Securities Company said the HCMC and Hanoi stock exchange indexes would seesaw sharply as they would test resistance levels again after the last day of ETFs rebalancing last Friday. Technical signs suggest investors should not aggressively buy shares in the short term.
Tran Minh Hoang from Vietcombank Securities Company said the market had positive reactions in the last two sessions of last week when the U.S. Federal Reserve hiked interest rates and ETFs rebalanced their portfolios. Both exchanges did not experience sell-offs while investors looked calm.
Investor sentiment will improve this week given less risk. However, the poor performances of large caps such as ROS and NVL may put pressure on the stock indexes, Hoang was quoted by tinnhanhchungkhoan.vn.
Regarding first quarter earnings results, Hoang said the sectors with outstanding earnings last year such as construction, building materials and real estate were expected to report high earnings in the first quarter.
Banks and securities firms may also report good earnings given favorable developments on the market.
After spending most of the session at near the reference level, the VN-Index faded in the last hour last Friday, closing down 0.61% at 710.54. The index fell 0.2% last week, the third straight week of losses after a nine-year high on February 27.
ROS and NVL, which were added to ETFs during the last two weeks, fell sharply late in the day when selling volume outstripped ETF buying on the last day of rebalancing.
Foreigners net bought VND225 billion of shares on the HCMC market while their net sales totaled VND54.6 billion on the Hanoi market. If their large net purchases of ROS, VNM and TLG via bloc deals had been excluded, their net sales would have amounted to VND514 billion on the southern bourse.