Market's appeal to foreign investors remains high
Market's appeal to foreign investors remains high
The stock market rose for a sixth straight week last week, while liquidity posted a second weekly loss. However, net inflows from foreign investors on both main exchanges were seen as positive signs for the market.
On the Ho Chi Minh Stock Exchange (HoSE), the VN-Index ended last week at 1,269.18 points, down 0.35 per cent, while the HNX-Index on the Ha Noi Stock Exchange (HNX) also fell 1.08 per cent to 297.94 points.
For the week, the market benchmark gained 0.54 per cent, while the HNX-Index dropped 1.8 per cent.
Trading value on HoSE increased by 0.5 per cent from the previous week to VND78.2 trillion (US$3.3 billion), equivalent to a decrease of 7.5 per cent in trading volume to over 3 million shares.
On the northern bourse, the trading value declined by 19.3 per cent from the previous week to more than VND7.9 trillion, equal to the trading volume of 407 million shares, down 21.4 per cent.
Last week, the market struggled with all indices entering resistance zones, triggering persistent selling pressure to cap the rallies.
Foreign investors continued to be net buyers on the market last week, with a net value of VND615.71 billion on two exchanges.
Of which, SSI Securities Corporation (SSI) bought the most with 25.4 million shares, followed by Sacombank (STB) with 13.2 million shares and Vietinbank (CTG) with 7.5 million shares. On the other side, Kinh Bac City Development Holding Corporation (KBC) sold the most with 7.4 million shares.
Saigon - Hanoi Securities JSC (SHS) said that the stock market maintained the uptrend despite the VN30-Index futures for delivery in August expiring last week. However, investors’ cautious sentiment was higher.
This was reflected in the slight fall in cash flows and light fluctuations in stocks’ movement.
On the technical front, the market was still strongly diverging within the resistance area of 1,260-1,285 points, and continuously moving up and down to absorb the supply pressure at the high price zone, as well as attract new demand for ticker symbols with good growth potential.
From a long-term perspective, the market is still accumulating as valuations are at a low level compared to the average of the last 5 years. Investors should maintain a reasonable proportion and can consider selectively disbursing and accumulating stocks with growth prospects in the third quarter of 2022, as well as good business results in the second quarter, said SHS.
Meanwhile, MB Securities JSC (MBS) said that the market showed signs of correction in recent sessions.
The market’s breadth was negative for three consecutive sessions, which showed that even though the indices advanced or corrected slightly, there were more stocks losing points.
"Technically, the VN-Index is showing signs of technical correction. Therefore, investors can gradually take profit in stocks that have jumped strongly while the structure of stock groups has not gained much," MBS said.
According to Mirae Asset Securities (Viet Nam), after hitting 1,283 points, the benchmark VN-Index plunged quite quickly and faced the risk of beginning a short-term correction.
The current short-term trend is sideways, but the support level for this trend is 1,265 points, the securities firm noted. On the other hand, the medium-term trend of the market is still positive with an uptrend and the support level at 1,250 points.
