Wednesday,  Oct 24, 2018,03:01 (GMT+7) 0 0
VN-Index seen beating 1,200 points before Tet
Phuong Thao
Monday,  Feb 5, 2018,21:28 (GMT+7)

VN-Index seen beating 1,200 points before Tet

Phuong Thao

HCMC – The VN-Index is expected to beat the 1,200-point level ahead of the traditional Lunar New Year holiday, or Tet, owing to lots of positive information, a securities expert said.

Speaking to the stock market information website vietstock.vn, Bach An Vien, head of the macro analysis and finance department of KIS Vietnam Securities Company, said the market is offering numerous opportunities to investors.

The VN-Index is likely to hit 1,200 points before Tet in a normal scenario and even 1,400 points under a high scenario. Currently, the market enjoys many supporting factors such as strong cash flow and positive business results of listed firms in the last quarter of 2017.

Furthermore, foreign capital is running strongly into the market given recent successful listings and initial public offerings. Investors should focus on blue chips in the real estate, banking, retail and aviation sectors and enterprises with divestment plans in the coming time, Vien said.

Besides, the expert said the market has not seen any risks in terms of macro economy and business operation. However, lower-than-expected results from the restructuring and divestment plans of State-owned firms, if any, may cause adverse impacts on the local market.

The market will even see a brighter outlook with the VN-Index reaching 1,400 points given the best scenario. Nonetheless, if the main index overcomes the 2007 peak at around 1,170 points, active profit taking pressure will trigger strong market volatility.

The VN-Index ended last week on a high note, closing up 0.49% last Friday to 1,105.04 points amid choppy trading. For the week, the index fell 0.9%, its first loss in seven weeks.

Financials bounced back from a two-day slump, led by lender VPB, which hit a record high and has been up 43% since mid-December after reporting strong results in the last quarter of 2017.

VCB, CTG, BVH and STB also rallied. CTD, a construction company, extended a 28% slide since reaching a record high in mid-November.

Turnover was mixed on both bourses. Matching volume on the HCMC market averaged out at 252.8 million shares per session, down 20.1% from a week earlier, while that on the Hanoi bourse rose a slight 6% at 80.6 million shares.

Foreign investors net sold over VND59 billion of shares on the two bourses, net buying over VND39.2 billion on the HCMC bourse and net selling VND98.2 billion on the Hanoi exchange.

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