Sunday,  Sep 23, 2018,22:43 (GMT+7) 0 0
Expert: Market uptrend seen cooling
Phuong Thao
Monday,  Mar 19, 2018,19:30 (GMT+7)

Expert: Market uptrend seen cooling

Phuong Thao

HCMC – The local stock market might keep rallying in the coming time but the uptrend may cool sharply, said Le Thu Ha, head of the economic research and market strategy department of Vietcombank Securities Company.

Speaking with, Ha said macro-economic factors are still giving huge support to the market. The nation is expected to see better gross domestic product growth rate in the first quarter of 2018 with inflation and interest rates remaining stable.

Besides, having launched five initial public offerings in the first two months of this year, the Government is going to speed up equitization and divestment at State-owned enterprises.

For the negative side, the expert advised investors to pay attention to capital withdrawals by foreign investors. In the upcoming meeting on March 21, the U.S. Federal Reserve may hike interest rates again, giving more leverage for a capital flight.

In general, the market still maintains a positive outlook with financial stocks being key index drivers. However, as the market should go through an accumulation period before staging a further rise, the uptrend may slow down sharply in the coming time, Ha said.

Besides, the expert said that banking and petroleum stocks may be able to rule market tendencies.

Many banks are poised to announce better business results given significant improvements in the bad debt handling process. However, investors should notice differences in the operation mode between traditional banks such as VCB, BID and CTG and newly-listed banks like VPB and HDB, which focus on the consumer credit segment.

For investors holding oil and gas stocks, the global oil price should be on the focus. Currently, investors should eye stocks in the fuel distribution, processing and service segments.

The VN-Index rose to an 11-year high, closing up 1% last Friday amid heavy trading on the HCMC exchange of VND10.7 trillion, more than doubling the daily average of the past year.

The main index advanced each day this week for a 2.4% gain and has risen for five weeks in a row. The market is now less than 2% from an all-time high above 1,170 points.

Leading gas firm GAS surged 14% last week. The stock has jumped 32% over the last five weeks amid investor expectations that the company will announce strong business results in the first quarter of 2018.

Securities firms also outperformed the market, led by SSI, VCI and HCM.

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