Market outlook seen bright this week
By Thuy Trieu - The Saigon Times Daily
HCMC – Three winning and two losing sessions and improved liquidity last week sent the VN-Index rising 18.12 points, or 3.52%, from the week earlier at 531.51 points, giving hopes for a good opening this week, said stock brokerages.
There have appeared positive signs supporting brokers’ views. Closing the week, the southern bourse saw advancers outnumbering losers at the ratio of 175 to 29. Liquidity surged with the average daily trading volume reaching 56.9 million shares worth VND2.5 trillion, up 34% and 43% respectively from the week earlier.
Foreign investors continued to be net buyers last week, acquiring VND201.6 billion worth of shares.
Explaining the good performance of the market, Vietnam International Securities Co. (VIS) said in a weekly report that many listed enterprises had announced positive results about dividends, bonuses, and additional share issues. “Active foreign buying suggests that current stock prices remain attractive to them,” VIS said. The broker expected the market would hover in the range of 527-545 points this week on higher liquidity.
Analysts of Hochiminh City Corp. (HSC) said in a report after Friday’s session that both markets rallied again after two days of consolidation. “Volumes also moved up. We saw a comfortable level of bids at the close and this suggests we would see a bright start to the week,” said the report.
Market sentiment next week will depend on the consumer price index (CPI), VIS said. HSC added the month-on-month CPI rise of 1% or 1.5% would be welcome but would not be seen as a surprise. But below 1% might have some positive impacts on the central bank’s policy that might be oriented toward allowing liquidity to slightly increase in the banking system.
APEC Securities Co. said 133 of 209 listed stocks on the southern bourse have the price per earning ratio (P/E) of between five and 13, showing that stock prices are not too high and listed firms’ fundamentals would continue supporting the market in near future.
However, the market will move into the strong resistance range of 534-545 points.
APEC Securities expected that the market would continue rising this week but the gains would be not as strong as last week.
Similar to the southern bourse, Hanoi’s index last week gained 3.29 points to close up at 173.45. The market’s average daily trading volume was 31.8 million shares worth VND1.07 trillion, up 12.6% and 13% respectively from the week earlier.