Vietnam’s benchmark VN-Index predicted to move sideways this week

Vietnam’s benchmark VN-Index is forecast to continually fluctuate early this week before a large upward fluctuation toward the end of the week, accumulating between support zone of 930-932 points and resistance zone of 940-943 points, according to Bao Viet Securities Company (BVSC).

The VN-Index decreased 3.30 points (-0.35%) to 937.45 points from last week. Source: BVSC.

BVSC expected the market will soon penetrate through this trading range in an uptrend. “If penetrating through resistance zone of 940- 943 points, the index will head toward 960-970 points in the short term,” said the firm in a report. 

The index ended last week’s final trading session at 937.45, a slight downturn of 0.35% or 3.3 points after rising in three consecutive sessions. Pressure from investors to book profit from shares of the banking sector led to a somewhat stagnation of the stock market, however, the recovering trend from support zone of 900 – 930 remains firm, VnExpress reported.

The current outbreak of Covid-19 led to a more cautious approach from foreign investors, especially as they remained net sellers for a fourth consecutive trading session with a combined of VND188.88 billion (US$8.12 million) in the Ho Chi Minh City Stock Exchange (HOSE) and Hanoi Stock Exchange (HNX) last week, focusing on bluechips in the VN30-Index, comprised of the 30 largest stocks on the HSX.

A majority of brokerage firm shared the same view that the market has now been accumulating above the bottom zone. Despite a slight decline, share values of companies in the fields of finance, automobile, construction, among others, are predicted to wait for positive news for a strong breakthrough.

In case the market successfully penetrates through this resistance zone, investors may consider opening buying positions at market’s corrections, prioritizing banking, information technology, and several primary blue-chip stocks whose prices are decreasing to their short-term support zones.