Vn-Index under pressure to return to 1,300-1,320 this week
Investors have been more cautious against the backdrop of the global economy on the downside and Vn-Index’s unsuccessful attempts to surpass the 1,380-mark.
Selling pressure from last Friday’s session put the benchmark Vn-Index back to 1,329.43, down 45.42 or 2.04% against the previous week, which could be seen as a sign that the index may be under further pressure and stay around 1,300-1,320 this week.
|An investor at a securities company in Hanoi. Photo: Tran Quynh|
In addition to a falling Vn-Index, foreign investors also stepped up their efforts to sell with a net amount of VND5.7 trillion (US$250.6 million) during the period, marking their highest net-sell figure for nearly three months.
According to MB Securities Company (MBS), the sharp fall from last Friday came with high liquidity of VND38 trillion ($1.67 billion) is a cautious sign, but noting “further assessment is required to confirm the market trend at the moment”.
For the time being, Vn-Index expected the Vn-Index to hover around 1,320-1,360 for the first few days before the trend becomes more visible.
Sharing the view, Yuanta Securities Company added the market would continue the correction phase at the beginning of the week and takes the Vn-Index to around 1,300.
“The market, however, would soon recover as investors wait for the market sign and return,” Yuanta stated in a note.
Yuanta also advised investors to refrain from selling their stocks when the Vn-Index is on the decline but could consider doing so as the index rises up.
The Vietcombank Securities Company (VCBS) the 1,300-mark is seen as a supporting zone for the Vn-Index to accumulate and recover.
“The fact that the global economy is on the downside amid serious Covid-19 situation and Vn-Index’s unsuccessful attempts to surpass the 1,380 mark causes investors to become more cautious,” it added.
“Investors should continue to monitor the market in the next few trading sessions before making purchase decisions,” stated the VCBS.
On a less optimistic view, the BIDV Securities Company (BSC) noted a sudden surge in liquidity in last Friday session to VND38 trillion showed investors are selling their stocks after the market recovery in the past month.
“The Vn-Index may stick around 1,320 this week, and if successful, it could go up to 1,350, otherwise, the market may go down to 1,260,” stated the BSC.
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