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Monday,  May 21,2018,06:21 (GMT+7)

Brokerages predict strong volatility this week

Phuong Thao
Monday,  Jan 29,2018,18:17 (GMT+7)
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Brokerages predict strong volatility this week

Phuong Thao

HCMC – Securities companies have forecast the stock market could turn volatile this week as a selloff may follow the recent strong rallies of the Hochiminh Stock Exchange VN-Index.

BIDV Securities Company said cash flow would continue supporting the market in the next few days. However, the market might come under selling pressure but demand could remain solid, resulting in strong volatility this week.

Bao Viet Securities Company also expected the VN-Index to continue advancing to around 1,145 points as many large firms have announced positive earnings results in 2017. However, stocks of enterprises with poor earnings results or gloomy prospects this year can be under selling pressure.

Although the index still has a positive outlook in near term but investors are facing higher market risk. To play safe, investors should reduce new stock purchases at the current high prices and continue holding on to rallying stocks, it said.

VN-Index rallies extended last Friday, adding 1% to its highest since March 2007 and marking its sixth straight trading day with gains of at least one percent.

There were just three trading days last week as a technical error led to a two-day shutdown of the Hochiminh Stock Exchange, but the index jumped 5% in its best week in more than two years and advanced six weeks in a row with a 19% gain over that period.

Financials were again the top contributor amid investor expectations of strong results for the last quarter of 2017 and the entire year. BID led gainers, followed by MBB, VCB and BVH. Top securities firms HCM, SSI, VCI also performed better than expected last week, surging 19%, 8.6% and 7.4% respectively.

Among oil and gas stocks, GAS rose to a record high after reporting solid earnings in the last quarter of 2017 and reacting to the price of Brent crude oil rising to above US$70 per barrel in Asian trade for the first time since June 2015.

After two days of closure, the HCMC exchange reopened on Thursday and soared on heavy trading. During last week, matching volume averaged out at 317.7 million shares per session on the HCMC market, up 14.9% against a week earlier, and 65.5 million shares on the Hanoi exchange, down 8.2%.

Foreign investors net bought nearly VND1.7 trillion of shares on the HCMC bourse while net selling over VND63.6 billion on the Hanoi market.

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