By Thuy Trieu - The Saigon Times Daily
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| Investors watch stocks prices at ACB Securities Co. Investor participation in the market has turned stronger as seen in much-improved liquidity - Photo: Tuan Anh |
HCMC – The southern bourse had a fairly good trading week with the index climbing higher and the market’s liquidity improving, suggesting that the local stock market is moving forward slowly but firmly, said securities companies.
Closing the second week after Tet, more buyers came back to the market while some negative news on inflation released after Tet has faded out. 
Investors actively participated in the market last week that after one falling and four rising sessions, the VN-Index added 16.48 points, or 3.3% from the week earlier. Closing the week, there were 169 stocks gaining and 34 others falling.
Meanwhile, liquidity improved also as the market’s daily trading volume averaged out at 52.5 million shares worth VND1.75 trillion, increasing 48% and 46% respectively from the previous week.
APEC Securities Co. said in its weekly report that the investor sentiment had been stronger while the VN-Index was moving forward slowly but solidly and the liquidity had been rising during the last two weeks.
On the basis of technical analysis, the rising trend had been set up gradually while supporting level is strengthened, it said.
“The market can witness adjusting sessions when the index approaches the 520-point level but the short-term uptrend has been consolidated,” APEC said.
Analyst of Vietnam International Securities Co. (VIS) said that the VN-Index now had a firm supporting level of some 485 points and a psychological resistance level at 520 points where the index failed to test several times. The broker forecast that the VN-Index would move around 505-520 points this week.
However, last week was the second week of net selling from foreign investors. They were net sellers of 4.68 million shares worth VND124 billion, decreasing by nearly half in volume but rising 10% in value compared to the week earlier.
VIS commented that foreigners were net buyers when the VN-Index was less than 450 points and their recent movement signaled that they were realizing profit and restructuring investment portfolios.
Fiachra Mac Cana, managing director of Hochiminh City Securities Corp. (HSC), said in the report after last Friday session that both markets made modest gains and although closing off the highs, trading volumes were still quite promising overall suggesting that participation levels remain fairly high.
“More importantly perhaps the level of bids at the close suggests that market sentiment remains fairly positive and may augur well for a positive start to the next week,” he added.
Mac Cana said there were still some mixed signals concerning credit growth and liquidity in the banking system indeed, but overall investors were inclined to think it may be improving gradually.
“Our view that inflation is peaking has been reinforced by signs that the yield curve in the bond market may have peaked as observed by our bond research team. This is very important in terms of gauging correct market entry timing and we may see an upward shift in both equity and bond markets in the near future,” he said.
With three rising and two falling sessions, Hanoi’s market last week totally increased 7.73 points, or 4.76%, from the week earlier to stay at 170.16. The market’s average daily trading volume was 27.8 million shares worth VND931 billion, about 2.5 times higher than the week earlier.