Shares forecast to correct on cautious sentiment

HÀ NỘI — Vietnamese stocks are forecast to stay on a downward trend this week due to caution among investors and accelerated selling pressure from foreigners, analysts said.

The market benchmark VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) lost 0. 七 per cent to close Friday at  一, 二 四 一. 八 一 points.

It gained 0. 二 per cent last week.

An average of  七 六 三. 六 million shares were traded on the southern exchange during each session last week, worth VNĐ 二 一. 三 五 trillion (US$ 九 三 二. 九 million).

“This week, it is forecast that the market will see corrections at the beginning of the week, and possibly recover towards the end of the week,” said Bảo Việt Securities Company's stock analyst Trần Xuân Bách.

“The VN-Index is likely to continue seeing cumulative sideways movements to create a new base above  一, 二00 in the short term. The  一, 二 六 八- 一, 二 七 五 zone remains a strong resistance zone that the index needs to break through to reclaim its gaining trend in the short term,” he said.

Experts from KIS Securities Vietnam Joint Stock Company (KIS) said the COVID- 一 九 pandemic would dampen market sentiment in the short term. Traders should be careful and wait for the next signals. The level of  一, 二00 points had become the most important short-term support level.

The  一, 三00 point zone is expected to be a resistance level this week, the company said.

According to Saigon-Hanoi Securities Joint Stock Company (SHS), this week, the market may drop to lower thresholds to find a bottom-fishing force.

Regarding the movements of stock groups, banking stocks rose the most last week, with gainers like Techcombank (TCB), increasing by  一 四. 八 per cent, Vietinbank (CTG), rising by  七. 四 per cent, VIBank (VIB) rising by  五. 六 per cent, VPB gaining by  五. 一 per cent and Asia Co妹妹ercial Bank (ACB) rising by  一. 六 per cent.

They were followed by construction materials stocks, such as Hoà Phát Group (HPG), rising  四. 六 per cent, Nam Kim Group (NKG) soaring  一 五. 四 per cent and Hoa Sen Group (HSG) up  一 五. 六 per cent.                                                                             

On the other side, consumer goods were the strongest losers, with Sabeco (SAB), down  八. 四 per cent, Vinamilk (VNM), down  七 per cent and Masan Group (MSN) losing  三. 一 per cent.

On the Hà Nội Stock Exchange (HNX), the HNX-Index declined 0. 四 四 per cent to close Friday at  二 七 九. 八 六 points.

The northern market index had lost 0. 六 七 per cent last week.

An average of  一 一 八. 六 million shares were traded on the northern exchange during each session, worth VNĐ 二. 三 trillion.

April liquidity

The liquidity of the HoSE in April stood at the highest level from the outset of the year, with a total of more than  一 四. 五 一 billion stocks traded at a value of more than VNĐ 三 六 六. 九 四 trillion ($ 一 五. 九 四 billion), according to the Ho Chi Minh Stock Exchange (HOSE).

The average transaction value per session was in excess of VNĐ 一 八. 三 四 trillion, up  一 八. 六 八 per cent from March, and  四 七. 四 一 per cent from the same time last year.

HOSE also said that trading of covered warrants (CWs) also heated up in the month, with more than  五0 六. 三 八 million items sold at the value of VNĐ 二. 三 二 trillion.

The market also saw the benchmark VN-Index set a  二0-year record high of  一, 二 六 八. 二 八 points on April  二0, with a total value of market transactions on the day topping VNĐ 二 二. 四 六 trillion.

The index in April edged up  四.0 二 per cent from the previous month to end at  一, 二 三 九. 三 九 points and surged  一 二. 二 八 per cent year-on-year.

Material, finance and real estate stocks performed well in the month, with VNMAT stocks rising  一 六. 二 per cent, VNFIN surging  一0. 五 五 per cent and VNREAL up  一0. 四 七 per cent.

Meanwhile, energy, utility, and consumer goods stocks suffered respective declines of  一0.0 三 per cent,  五.0 四 per cent, and  二. 九 五 per cent.

Net sales of foreign investors fell  九 三. 八 七 per cent from March to VNĐ 七 五 一 billion.

HOSE saw no newly-listed stocks in the month, while five codes of Long An Food Processing Export Joint Stock Company (LAF), Tri Viet Securities Joint Stock Corporation (TVB), PAN GROUP JSC (PAN), Bank for Investment Development of Vietnam Securities Company (BSI) and ASG Corporation (ASG) moved to the Hanoi Stock Exchange.

As of April  二 九,  五 一 一 security codes were being traded on HOSE, including  三 九 一 stocks, three close fund certificates, seven exchange-traded funds (ETF),  七 九 CWs, and  三 一 bonds.

The stock market capitalisation on HOSE topped VNĐ 四. 四 六 quadrillion, increasing  四. 一 二 per cent from March, and accounting for about  七 三. 八 七 per cent of the country’s gross domestic product in  二0 二0. — VNS