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Jun 07, 2021 / 15:25

Vietnam's benchmark VN-Index may hit 1,400 in short-term

The VN-Index has been one of the best performing in the world with an expansion of 34.51% in the past six months.

The market benchmark VN-Index will likely surpass the 1,400-mark in short term following a rise of over 4% at the close last week to 1,374.05, according to MB Securities Company.

 Investor at a securities company. Photo: Pham Hung

“A sharp drop in transaction volume may pose risk to the market, but it is not visible at the moment,” stated the securities firm.

Over the past six months, Vn-Index remained one of the world’s top performers by an expansion of 34.51% against early 2021. Experts have attributed the abundant capital inflows, a growing number of investors, and measures from stock authorities in addressing overload issues to the market growth in recent weeks.

VN-Index, in this context, had been rising for five consecutive trading sessions and ended the week at 1,374.05, representing an increase of 4.05% or 53.59 points against the previous week.

Data from listed Vietnam’s stock market in the top three with the highest growth, behind only Argentina’s and Hungary’s.

Reports from SSI Securities Corporation (SSI) and Yuanta Vietnam Securities expected the market to continue the upward trend with investors’ optimism being the main driving force. Yuanta Vietnam, however, noted the VN-Index may face resistance to grow and fall back to around 1,364 in the first few trading sessions this week.

“Stock values have not been as cheap as before, especially for those of banks and steel groups,” noted Yuanta Vietnam.

With stock prices continue to rise, securities firms are suggesting investors sell for profit regarding ones that have met their demand in terms of value, as well as buying in for those that have undergone a correction phase with prices going down to supporting zones.