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Brokerages: Selling pressure to build up this week
Phuong Thao
Monday,  Apr 10, 2017,23:21 (GMT+7)

Brokerages: Selling pressure to build up this week

Phuong Thao

HCMC – Securities enterprises have expressed concern over possible high selling pressure this week as the VN-Index beat the strong resistance level at 725 points with unsustainable support last Friday.

According to Bao Viet Securities Company, the market maintained positive rises last week but turnover declined sharply and falling stocks outnumbered rising ones, indicating there is weak support for a further index increase this week. In fact, the uptrend was chiefly driven by large caps while cash flow was not distributed evenly among sectors.

BIDV Securities Company said the market may not maintain its positive momentum after breaking the 725-point level given unsustainable support last Friday.

Investors are advised to raise the ratio of cash in their portfolios. They are also advised to be watchful for the news about the U.S. military strike against Syria, it said.

FPT Securities Company, meanwhile, expected the VN-Index to approach the 730-735 point range this week.

Currently, the index is well supported at 720 points after establishing a new price level, so a “sudden drop” is unlikely in the short term. However, investors should not be too optimistic as cash flow has yet to buoy an uptrend, it commented.

Last Friday, the VN-Index surged in the afternoon phase to close at the high of the day, up 0.65% to its highest level since February 2008.

The total trading value in HCMC and Hanoi reached over VND5.9 trillion, the highest level since September 2014. The VN-Index rose 0.8% for the week for a third consecutive week of gains, showed data of Viet Capital Securities Company.

GAS posted its biggest one-day gain in four months despite its disappointing first-quarter business results after the Brent crude price continued to rally in Asian trading as the U.S. missile strike against a Syrian air base stoked fears that Middle Eastern oil supplies could be crimped if violence spreads. STB soared to a 17-month high, extending a 28% rally over the last three weeks, after EIB said it plans to sell its entire 8.76% stake in the bank.

Foreign investors net bought shares for three sessions in a row on the HCMC market before shifting to the selling side in the last session. Overall, they net purchased 179,000 shares with a combined value of nearly VND204 billion, way below VND829 billion in the previous week.

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