Shares to move sideways with low liquidity
Shares to move sideways with low liquidity
The market will continue to move sideways this week with low liquidity to gradually form a strong enough accumulation base before returning to the uptrend, analysts said.
The VN-Index was maintaining the recovery p from the support area of 1,286-1,261 points with low liquidity, which was a typical sign for an accumulation period, said analysts from SSI Securities Joint Stock Company (SSI).
“The current bottom-fishing demand is still weak, so it was likely that the VN-Index will continue to move sideways with low liquidity,” they said.
“The VN-Index may return to the uptrend if the index surpasses the resistance area of 1,340 points with the volume rising to the 50-day average,” they said.
The benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) inched 0.42 per cent higher to close last Friday at 1,299.31 points.
The southern market index had lost 3.6 per cent last week.
An average of 599.9 million shares were traded on the southern market during each session last week, worth VND19.5 trillion (US$847.8 million)
BOS Securities Joint Stock Company (BOS) said that technical indicators had shown mixed signals, forecasting that the VN-Index will fluctuate around 1,290-1310 points in the first session of this week.
"Investors should carefully observe the market and consider increasing the proportion of cash in the portfolio," BOS said.
Saigon-Hanoi Securities Joint Stock Company (SHS) said that the market was likely to continue to adjust to lower price ranges this week to seek a return of demand.
The oil and gas industry last week became a bright spot with many stocks gaining, such as Vietnam National Petroleum Group (PLX), increasing by 0.6 per cent, PV Oil (OIL) gaining by 0.8 per cent, PetroVietnam Drilling Services (PVD) and Binh Son Refinery (BSR) both rising by 3.5 per cent, PetroVietnam Technical Services Corporation (PVS) up by 6 per cent.
Most of the remaining groups of stocks were in the downtrend. Banking stocks were in downtrend last week with Asia Commercial Bank (ACB) down 4.5 per cent, Bank for Investment and Development of Vietnam (BID) losing 5.3 per cent, VPBank (VPB) dropping 6.3 per cent, Vietcombank (VCB) losing 6.6 per cent, Vietinbank (CTG) falling 7.8 per cent and Techcombank (TCB) down 8.8 per cent.
“It is now not really safe for a short-term buying strategy,” said Vu Minh Duc, Senior Manager, Research and Analysis Department at Viet Capital Securities (VCSC).
“If selling pressure increases again causing the VN-Index to close below 1,270 points next week, the index is likely to continue dropping to lower support levels, around 1,200 points,” he said.
“The impact of the 4th wave of COVID-19 on Viet Nam's economic growth in the second half of 2021 was significant. VCSC’s macro department in the latest report has lowered its GDP growth forecast for 2021 from 6.7 per cent to 5.5 per cent. However, we think these are only temporal effects and GDP is expected to grow above 6.5 per cent in the next two years.
“However, the factor affecting the cash flow into the market is not the pandemic but rather the investors’ confidence in the market's growth trend,” he said.
Last week, on the Ha Noi Stock Exchange (HNX), the HNX-Index also closed higher on the last trading session of the week, up 0.48 per cent to 307.76 points.
It had risen 0.34 per cent last week.
An average of 126.8 million shares were traded on the northern market dduring each session last week, worth VND2.7 trillion.
