Monday,  Sep 24, 2018,06:50 (GMT+7) 0 0
VN-Index will likely continue downtrend this week
By Phuong Thao
Sunday,  Jun 24, 2018,10:24 (GMT+7)

VN-Index will likely continue downtrend this week

By Phuong Thao

HCMC – The VN-Index is forecast to continue a downward trend this week due to caution among investors and selling pressure from foreigners, said securities experts.

BIDV Securities Company in a report said that the market will likely remain gloomy this week and the bearish trend will increase. Notably, small stocks may see rising selling pressure as many large caps were already oversold last week.

The recovery of the market last week was still weak as sell orders still overwhelmed, even in rebounding sessions. Therefore, the downward trend is inevitable and there is no clear sign of recovery, the firm said.

Huynh Minh Tuan, business director of VNDirect Securities Company, said the market is facing unfavorable factors such as the U.S Federal Reserve’s interest rate hikes, trade war between the U.S. and China and the appreciation of the greenback against the Vietnam dong. Therefore, foreigners' selling pressure has impacted local equities.

The VN-Index went through ups and downs last week, with recovery sessions prompted by active bottom fishers after heavy losses. This week, bottom fishing may fail to save the main index as sellers may take the upper hand.

The only bright note is that Vietnam remains a frontier market, thus suffering less impact from the foreign withdrawal out of emerging markets, Tuan told vietstock.vn.

MSCI released the results of its Annual Market Classification Review last week with Vietnam not added to the watch list for potential inclusion to the MSCI Emerging Markets Index. According to Viet Capital Securities Company, Vietnam’s score card does not look pretty with ‘improvements needed’ on a number of items, including foreign ownership constraints, equal rights for foreign and local investors and information flow.

The specialist also predicted the VN-Index to bounce back after touching the supporting zone from 895 to 915 points. The recent decline will make stock prices affordable, giving more opportunities to investors.

The VN-Index climbed 1.42% last Friday. Despite rising in two of the last three days of the week, the index fell 3.3% after dropping 2.2% in a week earlier.

Trading value on the Hochiminh Stock Exchange remained muted at VND3.7 trillion. Dairy firm VNM was the top contributor to the day’s gain and has advanced for three days in a row.

Financials were strong across the board, including VCB, VPB, BVH, BID, CTG and MBB. In contrast, construction firm ROS extended a steep decline, plunging 24% this week and 76% since early November.

Share with your friends:         
 
Business
World
Sport
Travel
 
Publication Permit No. 321/GP-BTTT issued on October 26, 2007
Deputy Editor-in-Chief: Pham Huu Chuong
Managing Editor: Nguyen Van Thang.
Assistant Managing Editor: Pham Dinh Dung.
Head Office: 35 Nam Ky Khoi Nghia St., Dist.1, Ho Chi Minh City, Vietnam. Tel: (84.28) 3829 5936; Fax: (84.28) 3829 4294.
All rights reserved.