Shares to return to downtrend amid low liquidity

Shares are forecast to return to the downtrend this week as market sentiment stays weak amid low liquidity and a lack of stability for long-term recovery.

 

On the Ho Chi Minh Stock Exchange (HoSE), the VN-Index increased by 0.11 per cent, to end at 1,198.90 points.

An average of 544 million shares were traded on the southern exchange during each session last week, worth VND12.3 trillion (US$527.6 million).

In the second quarter of 2022, the average trading value of shares reached more than VND17.1 trillion each session on HoSE with the average trading volume reaching more than 589.15 million shares, corresponding to a decrease of 20.02 per cent in value and 18.33 per cent in volume over the same period in 2021.

“Cash flow, in general, is still cautious, and the weakening signal at the resistance zone of 1,200 – 1,220 points is still putting great pressure on the market, said Viet Dragon Securities Co.

“It’s expected that the market will continue to face difficulties at this resistance area.

“Therefore, investors need to re-evaluate the balance of supply and demand, temporarily limit buying on a large scale and need to make a decision defensively against risks before the resistance zone.”

It is possible that the VN-Index's recovery will continue in the near future, but it is important to note the pressure from the strong resistance area of 1,220 points. Therefore, investors should still limit buying and need to act defensively against risks from the resistance zone.

According to Dong A Bank Company (DAS), the medium-term trend of the market is still in a state of caution, not yet confirming the clear uptrend.

Regarding short-term trading, selling pressure may continue in the first sessions of July, but the demand still stayed strong so investors are still optimistic about the market.

Considering medium-term macro factors, Viet Nam's economic outlook in 2022 is promising and the profit forecast of listed companies will continue to be positive. Valuations are attractive for medium and long-term investors.

Market pillar stocks last week were banks with the strongest increase, with gainers of Bank for Investment and Development of Viet Nam (BID) up 12.3 per cent, Vietinbank (CTG), up 8.9 per cent, VPBank (VPB) up 3.4 per cent, Military Bank (MBB) up 2.1 per cent, Techcombank (TCB) up 1.4 per cent and Asia Commercial Bank (ACB) up 1.1 per cent.

They were followed by information technology stocks, thanks to the rise of key stocks in the industry such as FPT Corporation (FPT) up 2.9 per cent, CMC Corporation (CMG) up 6.9 per cent.

Consumer goods stocks increased slightly, mainly thanks to the positivity of industry pillar like Vinamilk (VNM), which gained 3.1 per cent.

On the Ha Noi Stock Exchange (HNX), the HNX-Index rose 0.43 per cent to end Friday at 278.88 points.

An average of 63.8 million shares were traded on the northern bourse during each session last week, worth VND1.2 trillion. 

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