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Sunday,  May 27,2018,12:38 (GMT+7)

Stocks predicted to fall below 1,000 points

Phuong Thao
Monday,  May 14,2018,22:27 (GMT+7)
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Stocks predicted to fall below 1,000 points

Phuong Thao

HCMC – The VN-Index of the Hochiminh Stock Exchange is predicted to slide below 1,000 points this month as the market is still facing numerous unfavorable factors, said securities experts.

Hoang Thach Lan, head of the individual client analysis department at Viet Dragon Securities Company, said that the index has tumbled nearly 15% compared to the peak at 1,204.3 points reached on April 9. Notably, the banking and petroleum sectors have incurred bigger losses than the index.

Market turnover has declined strongly and foreign investors have been active on the selling side, raising concerns over falling foreign indirect investment capital due to a slump of the world stock market. Besides, the State Securities Commission is going to tighten margin lending rules, Lan was quoted by vietstock.vn as saying.

For the bright side, the market is still underpinned by business results of listed enterprises in the first quarter, capital divestment and initial public offering by State-owned firms. Besides, the crude oil price has been rising rapidly.

Though the correction phase which began on April 10 is seen coming to an end, the index is likely to drop to under 1,000 points. In the long term, market developments will depend on interest rate hike decision by the U.S. Federal Reserve next month, Lan added.

Nguyen Thi Phuong Lam, a banking expert from Viet Dragon, said that lenders are receiving support from the central bank’s monetary loosening policies. Most banks are expected to report positive business results this year.

on May 11, the VN-Index looked poised for a fourth straight day of losses after falling as much as 1.4% in the morning. However, a strong rally in the afternoon left the index at the high of the day at the close, up 1.53%.

For the week, the market rose 1.6%, easing off fourweeks oflosses. Trading value on the HCMC exchange was light at just VND4.1 trillion, well below the daily average of the last month of VND6.9 trillion.

Excluding a put-through purchase of VND1.1 trillion worth of VIS shares on Thursday, foreign investors net sold VND170.7 billion of shares on Friday and VND911billion in the entire week.

Leading gas firm GAS led gainers as the price of Brent crude oil traded near three-year highs above US$77 per barrel. Banks rebounded strongly, led by CTG, VCB, BID and MBB.

Securities firm VND mirrored the movement of the overall market by hitting the trading floor in the morning before surging to close at its upper limit as investors digested the impact of the HomeDirect scandal, said Viet Capital Securities Company.

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