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Brokerages: Market sentiment likely turns bleak this week
Phuong Thao
Monday,  Apr 16, 2018,18:32 (GMT+7)

Brokerages: Market sentiment likely turns bleak this week

Phuong Thao

HCMC – Securities firms have been concerned about negative investor sentiment this week, predicting that the VN-Index may decline further as the global geopolitical situation has turned complicated.

BIDV Securities Company said that a market recovery is unlikely early this week as pillar stocks in the banking and petroleum stocks saw strong profit taking pressure last Friday. Investors may keep a ‘wait-and-see” attitude as other investment channels, especially gold, have become attractive amid geopolitical uncertainties following missile attacks on Syria by Western powers, thus making the stock market trend unpredictable.

Saigon-Hanoi Securities Company still expected some recovery sessions thanks to the resistance zone between 1,170 and 1,200 points this week but the rebound would be vulnerable. Investors have been cautious, resulting in poor turnover on both exchanges in recent time.

Bao Viet Securities Company said profit taking pressure would pile up this week but the market is still supported by positive information from annual general meetings and business results in the first quarter. Therefore, the index may seesaw in a narrow range with clear divergence among sectors.

This week, investors will be expecting the debut of Tien Phong Bank on the HCMC market. The lender will float 555 million shares on the bourse on April 19 at the reference price of VND32,000 each.

At this price, the bank’s market capitalization is estimated at VND17.7 trillion, making it the eighth biggest listed bank in the country.

Besides, investors will be watching developments on the global market. Aside from Syria’s tension, investors worldwide will follow the U.S.’s move over the possibility of re-joining the Trans-Pacific Partnership (TPP).

According to Viet Capital Securities Company, it was reported that during a meeting of U.S. President Trump with lawmakers from farm states, Trump directed economic advisor Larry Kudlow and trade representative Robert Lighthizer to look into re-joining the TPP, a deal that he withdrew from after taking office last year.

Last Friday, the VN-Index opened higher but could not hold on to those gains as strong afternoon selling left the market down 1.37% at the close. For the week, the index sank 3.5% for its first weekly loss in nine weeks.

Banks led the sell-off as VCB, BID and CTG were the top three contributors to the loss. Other financials, such as brokerages and insurers, also pulled back.

After strong gains on the previous session, energy names fell back, led by GAS, PVD, PVT and PLX.

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