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Stocks set to consolidate this week
By Phuong Thao
Saturday,  Sep 22, 2018,23:55 (GMT+7)

Stocks set to consolidate this week

By Phuong Thao

HCMC – After sharp rallies last week, local stocks are forecast to slide this week as the VN-Index of the Hochiminh Stock needs to enter a consolidation phase before rising further.

According to Bao Viet Securities Company, the market has shown signs of edging down. In short term, the market is expected to be in negative territory as investors may be cautious at the current peak.

Foreign investors are still reducing trade, which seriously affects investor sentiment, leading to caution among domestic investors. Besides, investors are quite vulnerable with many failing short-term bottom catches and the market’s quick fall previously.

This week, they will keep a close watch on market movements with little capital disbursement, it said.

FPT Securities Company, meanwhile, said there will be better buying opportunities in the Vietnamese stock market when the consolidation phase ends.

In near term, a short consolidation is needed as the VN-Index has to take a break after recent rallies. The main index must stand firmly above the 1,000 points before moving higher in the coming time.

For the long term, the VN-Index is expected to approach a new resistance of 1,100 points at the beginning of the October. Aside from supporting information from macroeconomic performance, Vietnam’s stocks still face more downside risks from external factors such as the U.S. Federal Reserve’s rate hike, trade war, and Chinese yuan depreciation, which could lead to a devaluation of the Vietnamese dong.

Last Friday, the VN-Index was headed for a tenth day of gains in the last 11 sessions until heavy selling at the close left the index down 0.18%, said Viet Capital Securities Company.

Trading value on the southern market shot up to over VND9.1 trillion. Despite the slight pullback, the market rose 1.2% last week after the previous week’s 2.3% gain and has increased for nine of the last 10 weeks.

Housing developer VHM fell to its lowest level since listing on the HCMC exchange in May despite strong demand from the VanEck Vector Vietnam ETF and DB x-tracker FTSE Vietnam exchange traded fund (ETF). Rebalancing by ETFs also led property firm NVL and food enterprise KDC to their trading floors.

Meanwhile, MWG jumped to its highest level since February. After the close of trading, the electronic retail store chain operator reported solid results for its grocery segment in January-August.

Banks also had another positive day, led by CTG, VPB, TCB and MBB.

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