Vn-Index set to hover around 1,350-mark this week

As public companies are set to release their business results of the third quarter next month, the majority of securities companies expect the benchmark Vn-Index to hover around the 1,350-mark this week as investors remain cautious against possible unexpected situations.

The Vn-Index is set to hover around 1,350 this week. Photo: Viet Linh

The last trading week from September 20-24 ended in a standstill with Vn-Index at 1,351.17, slightly down 0.11% against the previous week, due to concern over a possible default of China’s Evergrande or news related to the FED policy meeting.

The liquidity remained strong in the past week but there were signs of investors looking to sell their mid-cap and penny stocks and moving back to large-cap ones, while foreign investors continued to maintain their net-selling position at over VND800 billion (US$35.11 million).

MB Securities Company (MBS) said the fact that the Vn-Index has been moving sideways for the past three weeks around 1,330-1,360 is showing a cautious approach from investors ahead of possible negative business performance of public firms in the third quarter.

According to MBS, such a trend is understandable given the fact that a long social distancing period in Hanoi and Ho Chi Minh City has severely affected the economic activities and growth prospects of multiple sectors.

“The Index would continue to fluctuate around 1,330-1,360 this week, but amid headwinds coming, this is positive news in case liquidity could remain strong,” it added.

Sharing the view, Vietcombank Securities Company (VCBS) suggested investors are still observing the market when there is a lack of supporting information.

VCBS noted while the market has shown its resilience in the past by bouncing back from 1,330 in previous weeks, investors should be prepared for a possible market slump.

BIDV Securities Company (BSC) said the money inflows may be concentrated on stocks from firms with positive business results, but the index may stay around 1,350.

The Viet Dragon Securities Company warned investors not to be over-committed to the market before a trend starts becoming clear.

On a more positive note, SHS Company expected the Vn-Index to move on to the next resistance zone of 1,375-1,380 if it can hold on to the 1,350-mark. Otherwise, the Vn-Index may fall back to 1,325-1,340.