The Vietnamese stock market may continue to advance during the two last trading days before the Tet (Lunar New Year) holiday but cash poured into the market is believed to decline and there might be a differentiation between flows.
The benchmark VN-Index on the Ho Chi Minh Stock Exchange rose 1.32 per cent to end Friday at 1,126.91 points.
It had climbed 6.65 per cent last week.
An average of 598.7 million shares was traded on the southern exchange during each session last week, worth VND13.5 trillion (US$590.2 million).
“The market is expected to continue its advance in the next two trading days. After overcoming the resistance zone around 1115-1118 points, VN-Index is very likely to head towards a strong resistance zone around 1180-1200 points in the short-run,” said Bao Viet Securities Co.
“The capital flow into the markets is expected to weaken slightly as the investors usually refrain from trading when Lunar New Year Holidays are approaching.
“As a result, there might be a divergence of capital flow next week,” it said.
The company said investors should maintain equity exposure at around 50 per cent to 70 per cent of total portfolio value.
“Investors holding a high proportion of cash may considerably increase the size of the positions when the market enters correction phases.
“For the investors with large equity proportions and are using margin, they would consider utilising the days the market rises sharply to reduce the equity exposure to a safer targeted level of exposure,” it said.
According to MB Securities Joint Stock Company (MBS), the stock market grew last week following the same trend with other markets around the world.
“Domestic investors still traded positively and there were few signs of cautiousness even with Lunar New Year approaching. Market breadth was quite positive in most stock groups, showing that the market’s uptrend will continue in the coming sessions” said MBS.
“The recent recovery momentum showed that the market was claiming what has been lost since the end of January when the market failed to surpass 1,200 points.
“Although it is probably likely that the market would go forward, it will face challenges at 1,170 points, which may be an opportunity for the late money flow,” the company said.
According to Viet Dragon Securities Co, although the market was shaky during Friday, selling pressure was not significant.
“Therefore, the market got over the short-term profit-taking pressure with quite positive movements at the end of the session. It is expected that the market will continue to recover in the near future.
“Investors can rely on the current recovery but avoid using leverage to minimise unexpected risks when the market enters the Lunar New Year holiday,” Viet Dragon Co said.
Information technology stocks rose the most last week, mainly thanks to the push from pillars such as FPT Corporation (FPT), increasing 16.3 per cent, CMC Corporation (CMG) up 4 per cent.
It was followed by banking group, with gainers in the industry being Bank for Investment and Development of Viet Nam (BID), up 4.8 per cent, Military Bank (MBB), gaining 5.5 per cent, Asia Commercial Bank (ACB), rising by 6.3 per cent, Vietcombank (VCB) increasing by 7.5 per cent, Saigon-Hanoi Bank (SHB), increasing by 10.3 per cent, Techcombank (TCB), up 13.4 per cent, Vietinbank (CTG), going up 17.4 per cent and VPbank (VPB), gaining 23.3 per cent.
Oil and gas group also performed well with notable stocks such as Viet Nam National Petroleum Group (PLX), rising 6.5 per cent, PetroVietnam Technical Services Corporation (PVS), rising 10.8 per cent, PetroVietnam Drilling and Well Services Co (PVD), up 12.7 per cent and Binh Son Refining and Petrochemical Company (BSR) up 14.6 per cent. — VNS