Monday,  Oct 22, 2018,21:00 (GMT+7) 0 0
Stock investors seen in holiday mode this week
Phuong Thao
Monday,  Apr 23, 2018,23:40 (GMT+7)

Stock investors seen in holiday mode this week

Phuong Thao

HCMC – Despite a sharp rebound on April 20, investors may take caution and be less active this week as the Hung Kings death anniversary on April 25 is a national holiday plus the Reunification Day (April 30) and International Labor Day (May 1) holidays.

According to analysts and securities firms, the stock market will continue rallying in the coming week, supported by good company earnings results in the first quarter. But investors may lock in profit just ahead of the long national breaks.

BIDV Securities Company said foreign investors’ net selling of large stocks sparked a selloff last week. The selloff peaked last Thursday when the VN-Index of the Hochiminh Stock Exchange incurred its biggest one-day loss in more than two months, plummeting 3.9%.

Several of the market’s high-flyers that fueled a 65% surge over the last year to the recent all-time high led to the selloff, including property firm VIC, consumer goods producer MSN and low-cost air carrier VJC. Financial stocks VCB, BID, CTG and BVH fell sharply.

The VN-Index is likely to test the 1,090-point level again this week if foreign investors continue selling shares. There is speculation that foreign investors are restructuring their portfolios and picking shares of newly-listed firms such as Vinhomes and Techcombank.

If this is the case, share selling by foreign investors might pause in the middle of this week, allowing the index to regain ground, the brokerage said.

VPBank Securities Company, however, said a recovery of the index and cash flow on April 20 may be short-lived while the long-term market outlook is still dismal. Therefore, investors should be cautious.

Viet Dragon Securities Company said the market has entered a deep correction period as the VN-Index retreated for two sessions in a row. The index needs much time before staging a sustainable recovery.

The VN-Index was down as much as 1.5% in the morning session before rallying into the close to finish up 2.3% on Friday, a strong rebound after a sharp slide on the previous session. Trading value on the HCMC exchange jumped to VND9.3 trillion, well above the daily average for the past year of VND4.5 trillion. Last week, despite last Friday’s gain, the index fell 3.2% following a pullback of 3.6% in the previous week.

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