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Stocks rise to over 790 points
Phuong Thao
Thursday,  Sep 7, 2017,00:19 (GMT+7)

Stocks rise to over 790 points

Phuong Thao

HCMC – The local stock market broke through the strong resistance of 790 points on September 5 as large caps kept rising, lifting the VN-Index up 3.58 points, or 0.45%, at 792.31.

Bank stock VCB, beverage firm SAB and low-cost carrier VJC were among top contributors to the main index. Meanwhile, speculative stocks declined sharply in the afternoon phase.

HAI, an agricultural chemical firm, plunged to the floor price of VND10,350 a share on matching volume of 3.7 million shares. Property firm FLC fell 4.4% at VND7,370 per share and took the lead for liquidity on the HCMC market with 24.3 million shares traded.

Among property stocks, SCR and EVG went up to the ceiling prices of VND11,400 and VND8,660 a share respectively. SCR was the second most actively traded stock with nearly 10 million shares while EVG reported a trade volume of 1.7 million shares.

Vu Minh Duc, head of individual investor analysis division at Viet Capital Securities Company, expected the main index to overcome the resistance zone between 790 and 800 points and leap to new highs.

Cash flow ran strongly into blue chips before the National Day on September 2. While the VN30 Index, which represents blue chips on the southern market, increased with strong turnover, speculative and small stocks declined with contracting trading volume.

The market still maintains positive outlook in the medium term, with the VN-Index projected to overcome the resistance zone from 790 to 800 points and reach new highs. However, turnover is a big obstacle while blue chips and some stocks having good fundamentals still get supporting information.

Investors are advised to stay cautious if stocks rise strongly after the holiday. At the end of this month, global developments, especially results of a meeting of the U.S. Federal Reserve, will leave some impact on the local market, Duc said on tinnhanhchungkhoan.vn.

Nguyen Huu Binh, head of analysis department of Vietnam Investment Securities Company, said that the recent rising streak is not sustainable as the main index relied heavily on large caps.

In the long term, investors will still focus on enterprises with outstanding business results, and this means stocks having soared sharply will not bring about high profits in the future, he said.

On the Hanoi market, the HNX-Index added 0.56% at 104.38. Turnover was equivalent to last Friday’s with 36.7 million shares worth VND431.8 billion changing hands, including VND4.9 billion worth of bloc deals.

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