With the market experiencing strong volatility last week, analysts from securities firms are having difficulties forecasting movements this week.
While some expected that cash flows might stay in the market and gradually balance to prepare for the next rally, some analysts predict cash flows will weaken and the market might fall to lower levels to seek new demand.
The market benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) finished last week at 1,168.69 points, up 0.01 per cent, after turbulent sessions. The index kept falling in the morning and bouncing back later in some early sessions of the week.
For the week, the VN-Index rose 0.02 per cent.
With the index nearly sideways in the last session, analysts from Viet Dragon Securities Corporation (VDS) said the market almost reached a balanced territory to prepare for a bullish period.
Meanwhile, BOS Securities Corporation (ART) assessed that technically, the VN-Index had received support from strong demand at the 1,155 – 1,160 points level in the last trading session. However, technical indicators still showed weaker cash flows while signs of a bull market are nowhere to be seen.
The securities firm expects the VN-Index might successfully test the 1,170 points level early this week before confirming the return of a rally.
According to Phu Hung Securities Corporation, on the technical font, the VN-Index will bounce back. Transaction volumes decline but remain higher than the average of 10 and 20 trading days, which means cash flows will stay in the market. Technical indicators showed recovery is the market’s main trend in the short-term, the firm added.
Analysts at Sai Gon – Ha Noi Securities JSC (SHS) said the market rose in the first two sessions of last week to test the psychological resistance level of 1,200 points again. But the effort of buyers failed as selling pressure persisted.
The frequent overload of orders during trading hours on HoSE last week also affected transactions, making investors’ sentiment turn negative.
The short-term trend of this week is unpredictable with the market falling deeper to find new demand.
Last week, the market’s liquidity in both southern and northern exchanges was higher than the week before and higher than the 20-week moving average.
Utilities stocks posted the biggest gain last week with an increase of 3.4 per cent in market capitalisation. Of which, some outstanding stocks were PetroVietnam Gas JSC (GAS), up 3.6 per cent and PetroVietnam Power Corporation (POW), up 6.7 per cent.
Other sectors witnessing good performance were materials, consumer services and industry.
Meanwhile, consumer products stocks reported the biggest loss of 1.2 per cent in market capitalisation with Masan Group Corporation (MSN) down 1.2 per cent, Viet Nam Dairy Products JSC (VNM) down 1.7 per cent and Saigon Beer – Alcohol – Beverage Corporation (SAB) down 5.4 per cent.
Banking, pharmaceutical and healthcare, and information technology (IT) stocks also fell 0.3 – 1 per cent.
Foreign investors fled from the market last week, with a net sell value of over VND3.08 trillion, equivalent to 82.7 million shares. — VNS