In case the benchmark Vn-Index could surpass the 1,085-mark, optimism could further put the index to 1,125 or even to 1,200 this week, according to the Viet Capital Securities Company (VCSC).
| Stock market is expected to continue its positive uptrend. Photo: Chien Cong. |
At the close last Friday, Vn-Index rose by 15.69 points or 1.49% against the previous trading session to 1,067.46. Liquidity was lower than previous session but still at high level, with 560.1 million shares matched on the Ho Chi Minh Stock Exchange (HoSE), home to the majority of large-caps. Notably, banks and securities firms were the main supporters for the market.
The Vn30-Index, comprised of the 30 biggest constituents on the HoSE, witnessed strong rise (+ 1.94%), with VPB increased to the ceiling of 6.9%, followed by SSI (+ 7%), MBB (+ 4.5%), HDB (+ 4.2%), VCB (+ 3%), among others, while there were no losers in the Vn30-Index.
Foreign investors returned to be net buyers on the HoSE with value of VND61.1 billion (US$2.62 million), focusing on TPB, MBB, VHM, VRE, and BID.
“VN-Index returned to increase despite risky signs in previous session, showing that money flow is actively supporting market,” stated Phuong Nguyen from Viet Dragon Securities Company (VDSC), adding the fact that the index closed at the highest level in the last four sessions positively helped market widen its current gaining span.
While investors can keep potential stocks, Phuong noted they need to narrow portfolio with signs of recession in mind. Nevertheless, with optimism on the stock market following news about Covid-19 vaccine and the positive economic outlook,” investors should look for short-term opportunities at some stocks with good accumulation and gaining signals.”
Sharing the same view, the VCSC expected the market to continue the growing trend in the first few trading sessions of this week and reach resistance zone at 1,070-1,085. “There could be a short correction phase, but given the strong capital inflows, the Vn-Index could still break out the 1,085-mark and solidify its position towards 1,125, or even1,200,” it noted.
Broker expert Bach Tran from the Bao Viet Securities Company (BVSC) gave a more cautious view, saying “the market will possibly face correction pressure during early sessions before rebounding toward the weekend.” This is due to the fact that various stocks have become overbought, which may lead to strong volatility and correction pressure to the index.
Nevertheless, “the index should maintain a positive uptrend with target price at 1100- 1110 points,” Bach Tran added.
In the current market, the cash flow tends to shift among stock sectors seeking profits, with small and mid-cap stocks are likely to flourish in the next few sessions.
The BVSC expert urged investors to hold stocks in the portfolio and consider lowering short-term positions during the exciting rally market from the beginning of the session or at market’s resistance zone 1,100- 1,110 points.
