The local stock market’s main index rose 1.4% to 529.31 after four sessions last week (the market closed on Friday, the Hung Kings death anniversary holiday). While the first three daily sessions saw capital flow into small and medium cap stocks that made the index move in a narrow trading range, the last session of the week on Thursday was dominated by blue-chips as capital came back to the large cap stocks.

The VN-Index broke its resistance level of 525 points to increase 1.84% to 529.31 points.
The market’s liquidity reached its highest level since early this year as investors traded a total of 79.8 million shares worth VND3.2 trillion, increasing 41% and 51% respectively from the earlier session. During this session, blue-chips, including financial stocks such as SSI, EIB, STB, and VCB, increased again.

The report from Ho Chi Minh Securities Corp. said that the cumulative effect of good news on the macro side from a lower CPI, a stable currency, better trade numbers and rising industrial production, and then some small but significant changes in monetary policy had finally helped investor sentiment push through the 525 barrier on the VN-Index.

“We have seen these levels in the VN-Index in the past few months without any follow-up and so the market will need to put in a few more good days before the last four months becomes a distant memory,” it said.

Meanwhile, SME Securities’ analysis department, said, “We identify that the market does not have enough information to support stronger steps to accelerate. The ability to decrease is very high. However, as investors tend to restructure their portfolios from penny stocks to blue-chips, it will support the market’s liquidity and strong margins on the VN-Index”.

Vietnam International Securities Co. said in its report that given Vietnam’s positive performance on global markets, the company has an optimistic view on rising trends on the VN-Index in the short-term. However, uptrend in the long-term must be confirmed in coming sessions, the company said.

Most brokers advised investors to realize profits from penny stocks, which have strongly accelerated recently and to focus on stocks with good fundamentals in the coming time.
Foreign investors were active buyers on two bourses, purchasing net VND367 billion worth of shares last week.  Foreigners focused on blue-chips such as HAG, VIC, HPG, SSI, and SJS.

Given better performance than the southern bourse, Hanoi’s index via four sessions rose 3.3% last week to 178.33 points with high liquidity. Securities companies expected that capital, which rushed into the Hanoi market, would return to blue-chips on the southern bourse again this week.

Source: SaigonTimes