As the benchmark Vn-Index peaked at an all-time high of 1,045.96 at the close last Friday [December 11], up 2.4% in the past week, investors are urged to stay cautious as the stock market may face correction pressure.
The Vn-Index in short-term could rise to 1,100-1,200. Photo: Pham Hung. |
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“Investors, however, could take opportunities from correction phases that put the VN-Index back to support zone to accumulate shares,” stated a report from the SSI Securities Corporation.
Sharing a similar view, Bao Viet Securities Company (BVSC) suggested as the market rose to 1,045.96 points, the Vn-Index has recorded six consecutive gaining weeks, therefore, a downside risk of the market this week remains “relatively large” with the 1,045 – 1,050 being the next resistant zone.
“If the index enters a short-term downside phase, investors should consider lowering the stock proportion or taking profit from existing positions,” stated Bach Tran, a broker expert at BVSC.
“Investors should not open new positions at stocks with prolonged uptrend and pay more attention to accumulated stocks,” she noted.
A rise in the market last week came from investors’ positive response to Vietnam’s economic outlook after the Asian Development Bank (ADB) revised its GDP growth forecast for Vietnam upwards to 2.3% from its previous estimate of 1.8% in September.
Shares of a number of airlines also increased as the Standing Committee of the National Assembly approved a resolution to cut 30% of environmental protection tax for jet fuel until 2021.
The imminent signing of the UK – Vietnam Free Trade Agreement after the conclusion of the negotiation between the two countries last Friday was seen as a key factor for stocks from companies in the textile and fishery industries have also turned green.
KB Securities in its weekly-report noted the trading volume dropped to 414 million shares from last week, and if the issue continues to persist, Vn-Index may fall into the correction phase. Otherwise, the index is expected to head toward resistance 1,070 – 1,080.
SSI’s broker expert Lan Anh told Hanoitimes from a technical viewpoint, the short-term target of the market continues to be in range of 1,100-1,200. In long-term, a possibility of Vietnam being reclassified as an emerging market status could propel the Vn-Index to a new height of 1,450 and 1,800 points,” she noted.
