Tuesday,  Jun 19, 2018,13:26 (GMT+7) 0 0
Supporting news poised to lift stocks up
Phuong Thao
Tuesday,  Sep 5, 2017,16:51 (GMT+7)

Supporting news poised to lift stocks up

Phuong Thao

HCMC – The local stock market is expected to continue its uptrend this week as blue chips and bank stocks have got more supporting news, said securities experts.

Hoang Thach Lan, a securities expert from Viet Dragon Securities Company, said that the market is underpinned by positive credit growth prospect in the last four months of 2017.

Though the Government has ordered lenders to focus on the manufacturing sector instead of the real estate market, the bourse will still enjoy indirect benefits. Normally, equities go up whenever credit policies are relaxed.

Vu Minh Duc, head of analysis department at Viet Capital Securities Company, said turnover on the HCMC market remained at an average level if huge transactions of FLC were excluded. The property firm reported trading volume of over 60 million shares in some sessions last week.

However, the VN-Index gained 2.2% during the week due to strong cash flow into large caps such as real estate giant VIC, bank BID and national gas group GAS. Besides, the VN30 Index closed the week at an all-time high at 774.76.

The market may maintain its uptrend this week as investors will be more active after a short holiday. However, it is wise to stay cautious at the resistance zone between 791 and 793 points of the VN-Index, Duc said in an interview with Dau Tu Chung Khoan website.

According to Phan Dung Khanh, head of investment advisory at Maybank Kim Eng Securities Company, market tendency will turn more visible after the first one or two sessions this week.

The main index is standing near a 10-year high at 790 points. If it surpasses the level and reaches 800 points, the index may head to 850 points. Economic and corporate information is still supporting the market but poor turnover, like in the last session before the holiday, may be a drawback.

Sluggish trade may pull market back though the VN-Index could rise to new highs. In contrast, better turnover and foreign net buying will sustain the market uptrend, Khanh commented.

Nguyen Huu Binh, head of analysis department at Vietnam Investment Securities Company, said that the recent rally largely depended on a number of large caps while many stocks moved flat or made modest rises. However, large caps will encounter strong profit taking pressure after soaring sharply.

Certainly, the market still relies on many factors but the heavy dependence on large caps is dangerous. Investors may offload stocks to lock in profits anytime, as seen in the recent past. Between July and August, the VN-Index plummeted from 796 to 760 points due to profit takers, he said.

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