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Brokerages forecast better trading this week
By Phuong Thao
Sunday,  Dec 16, 2018,09:25 (GMT+7)

Brokerages forecast better trading this week

By Phuong Thao

HCMC – Securities enterprises have predicted improved trading value on the local stock market this week as long-term investors may actively buy shares of enterprises having positive business results or attractive dividend payment plans in the near future.

Last Friday, the VN-Index of the Hochiminh Stock Exchange fell for a fourth day in the week, closing down 0.86%. For the week, the index dropped 0.5% for its first loss in four weeks.

VCB was the top contributor to the loss and most other banks followed suit, including CTG, VPB and BID. EIB was the rare bank to buck the trend.

FPT Securities Company in a report predicted better turnover this week as domestic players will restructure portfolios, picking new shares with promising business results or locking in some profit. However, the turnover improvement may be insignificant as foreign investors may reduce transaction amid a holiday mood.

Currently, there is not much support from foreign capital for the market as selling is still foreign investors’ short-term trend. As domestic traders are not strong enough to lift the market consistently, the VN-Index may become volatile this week, the firm said.

According to Bao Viet Securities Company, the VN-Index is consolidating with investors waiting for news from global markets and from local businesses to make new decisions. Many large-cap stocks and blue chips are approaching their resistance zones and they are about to encounter strong selling pressure.

The current trading condition is also an opportunity for investors to buy stocks that are highly appreciated for their earnings prospects and benefits from the macroeconomic conditions in the last quarter of the year. If the market recovers, bank stocks would remain quite attractive to investors, whereas many enterprises in the fields of seafood, petroleum and real estate have also announced high earnings for the last quarter and the entire year.

Saigon-Hanoi Securities Company, meanwhile, predicted a gloomy outlook, saying that recent developments have indicated possible downside risks on both exchanges.

In many sessions last week, the indexes briefly declined steeply and only large caps could rebound. Except for property stocks, the outlook of most of other large caps is not positive. Therefore, it is risky to hold a high ratio of stocks now.

Selling pressure has piled up day after day. If the cash flow is not strong enough, the market may enter a phase of correction this week, the brokerage firm said.

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