Cash inflows return to pull Vn-Index upward
Investors are returning to the market and contribute to the recovery of the Vn-Index.
While the benchmark Vn-Index closed last week on a positive note or an increase of 0.4% to 1,357.05, there is a strong sentiment that the cash inflows would return and pull the market upward, according to Viet Capital Securities Company (VCSC).
| Investors at a securities company in Hanoi. Photo: Tran Quynh |
The move marked a dramatic reversal in the last minute of Friday’s session when foreign investors net sold more than VND766 billion (US$33.7 million), not to mention the market was on the decline for the majority of last week.
“This week, the market may go for the resistant zone at 1,370-1375 if Monday’s session ended at over 1,358,” noted the VCSC.
The securities firm suggested that if the Vn-Index may go beyond the 1,375, it would be a high chance to reach its previous peak at 1,400.
On the contrary, failure to stay green in today’s session could affect investors’ sentiment and put the market in a correction phase, it continued.
Vietcombank Securities Company (VCBS) noted recent recovery to over 1,300 points demonstrated investors’ optimism on the market prospect.
“While there had been selling pressure for profit in short-term, but such decline was marginal and with a strong recovery followed. This showed investors are returning and contributed positively to the market, ” added the VCBS.
In this context, VCBS suggested investors buy in stocks with high potential for growth, including those from the banking sector, petroleum, or having recorded strong business performance.
In a more cautious view, SHS Securities Company expected the market to stay under selling pressure when the Vn-Index approaches the 1,370-1,375 range.
“Investors may stay outside the market to observe the situation before deciding to purchase,” stated the SHS.
Sharing the view, BIDV Securities Company (BSC) stated investors should be more cautious as foreign investors continue their selling trend and the market fell to around 1,350 last week.
“Under this situation, Vn-Index may hover around 1,330-1,380 this week,” it added.
BSC, however, said the fact that the Fubon FTSE Vietnam ETF fund is mobilizing $180 million could be a piece of welcome news and support the strong growth of the Vn-Index this week.
