Markets face further correction
Markets face further correction
The domestic stock market will likely experience another correction in early sessions this week, as selling pressure continues to build around the short-term peak on the main exchanges, experts say.
The benchmark VN-Index on the HCM Stock Exchange decreased in the last two weekend sessions, but still gained 1 per cent for the week, closing Friday at 714.5 points.
The southern market index increased 7.5 per cent this year.
Liquidity remained high last week, averaging some 221 million shares worth VND3.83 trillion (US$167 million) per session, an increase of 26.8 per cent in volume and 15 per cent in value, compared to the previous week’s figures.
These numbers were 100 and 50 per cent higher, compared to January’s daily trading volume and value, respectively.
On the smaller exchange in Ha Noi, the HNX-Index increased 0.5 per cent for the week, ending Friday at 86.3 points. The northern market index gained 7.7 per cent this year.
Liquidity was positive in the northern market, with over 53 million shares worth VND484 billion traded during each session.
“Investors should be watchful of short-term market trends, as the VN-Index has advanced for nine consecutive weeks and many stocks have gained substantially, which intensified selling pressure on the market,” BIDV Securities Co’s weekly review said.
The report noted that the VN-Index moved some 715 points in the last three sessions, with over 200 million shares traded, which is signaling a possible reversal in the short term.
“The market needs new impetus to break the level points, whereas liquidity is continuously increasing and has triggered a risk of downward possibilities,” the report said.
Apart from blue chips, property and agricultural stocks were the biggest gainers.
Van Phat Hung Corp (VPH), FLC Group (FLC), Thu Duc Housing Development JSC (TDH), Hoa Binh Construction and Real Estate Corp (HBC) were among the top 10 largest runners on the HCM Stock Exchange, with total gains of between 22 and 34 per cent for the week.
These were the companies having posted impressive business results for 2016.
Other companies, such as Novaland Investment (NVL), Hoang Quan Consulting-Trading-Service Real Estate (HQC), Tan Tao Investment Industry Corp (ITA) and Kinh Bac City Development Share Holding Corp (KBC), also performed well on positive outook for the real estate market this year.
An Giang Fisheries Import Export JSC (AGF) recorded over 17.4 per cent last week.
Agribusiness Hoang Anh Gia Lai Co (HAG) dropped nearly 7 per cent in Friday’s trade, but still increased 4.7 per cent for the week and 41.7 per cent this year.
According to analysts at Vietnam Investment Securities, the VN-Index will likely decline in the early session today to test the 715-point level, and can bounce back towards the end of the session.
“Cash inflows remain very strong... and we believe the upturn will come back in later sessions of the week,” they wrote in a market report.
Foreign investors were net buyers for a second week, lifting their total net buy values to VND631 billion on the two exchanges. Their buys focused on large-cap stocks, such as dairy giant Vinamilk (VNM), real estate developer VinGroup (VIC), Vietcombank (VCB), Eximbank (EIB) and brewery Sabeco (SAB).
