Vn-Index set for upward trend from September 13-17
Stocks from firms in fields of retail, tourism, or aviation may become attractive once the process of reopening the economy is accelerated.
The majority of securities brokerage expect an upward trend for the Vn-Index this week, but investors should be cautious about the market performance as there is still a lack of supporting information and exchange-traded funds (ETFs) restructuring their investment portfolios.
The forecast was given by experts from Vietcombank Securities Company (VCBS), Viet Dragon Securities Company (VDSC), and MB Securities Company (MBS).
| Investor at a securities company in Hanoi. Photo: Cong Hung |
The benchmark Vn-Index last week fluctuated in a narrowing range from 1,330-1,350 and ended at 1,345.31 last Friday, a slight increase of 0.8% against last week.
While the market closed last week’s session on a positive note, foreign investors maintained their net-selling position with an amount of VND3.1 trillion (US$136 million). Such a trend, along with the serious Covid-19 situation and the lack of supporting information may hamper the growth of the market in short term.
Vietcombank Securities Company (VCBS) noted while the Vn-Index has been in close range to the 1,350-mark and liquidity remains abundant, the overall market sentiment continues to be cautious.
“Despite the fact that the market is still under selling pressure for profit, the declining trend did not last long as the Vn-Index was in right back in recovery,” stated the VCBS, adding the money is returning to the market.
VCBS said the lack of supporting information was the main reason for recent ups and downs.
“The market may remain the same for a few weeks before firms start releasing their financial statements for the third quarter,” added the securities company.
In this context, VCBS suggested investors accumulate stocks of firms that are expected to have good financial results in the two final quarters or wait until the Vn-Index moving to the next supporting zone before making any purchasing decision.
Sharing the view, Viet Dragon Securities Company (VDSC) noted the stock market constantly moved sideways within a narrow range in the last trading week, in turn causing difficulties for investors to gain short-term profits.
SHS Securities Company said as the Vn-Index is hovering around 1,330-1,350, the market trend would change once “the index breaks through to either end.”
“For this week, the market may go through a correction phase if it could not surpass the 1,350-mark. Otherwise, the Vn-Index may go up to 1,375-1,380,” added the SHS.
Meanwhile, MB Securities Company (MBS) noted ETF’s reviewing period and upcoming Fed’s meeting in September are the key factors affecting market performance.
“Stocks of firms in fields of retail, tourism or aviation may become attractive once the process of reopening the economy is accelerated,” stated the MBS.
MBS forecast Vn-Index to move up to 1,370 this week with a slight increase in liquidity.
