Trading value seen improving this week

Created 23 January 2018
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HCMC – Higher trading value on the stock market is expected this year as investors will actively buy shares of enterprises that reported positive business results in 2017.

Kết quả hình ảnh cho VRG dự kiến niêm yết trên HOSE vào giữa năm 2018

Many enterprises announced their earnings reports last Friday, with leading firms such as Saigon Securities Inc. (SSI) and Phu Nhuan Jewelry Company (PNJ) having positive results. This week, cash flow is predicted to run into firms with high profits such as securities firms and banks.

Last Friday, the VN-Index and VN30 Index continued to rally following Thursday’s bullish run and reach their intraday highs of 1,067.21 and 1,062.13 respectively. However, sudden selling pressure on large-cap stocks like property firm VIC, dairy giant VNM consumer goods firm MSN at the closing phase cooled the market.

The VN30 trimmed gains to end the day only at 1,053.47 points while the VN-Index still sealed a 1.13% rise thanks to retail group VRE and lender HDB. Liquidity of the HCMC market soared 31% to a high of VND10 trillion.

Low-cost air carrier VJC and fuel distributor PLX jumped by 6.9% and 5.9%, led by demand from the E1VFVN30’s rebalancing activities, as they were added to the basket for calculating the VN30 Index. The fund’s activities in turn put more pressure on oil and gas stock PVD and urban project developer KBC, which were removed from the VN30 Index.

Foreign trading was also on a bright note as investors net bought over VND3.1 trillion of shares on the southern bourse. Since early this year, they have net purchased VND7.2 trillion of shares.

FPT Securities Company predicted the market would turn volatile this week. Although there is no more negative impact from a draft rule which proposes higher equity for margin lending transactions, investors should stay cautious in the next one or two weeks.

Within a short period, the VN-Index repeatedly rose to new highs without experiencing corresponding correction phases. Therefore, market sentiment become sensitive to information, FPT said.

From a technical perspective, risk has been rising after beating the 1,050-point level. The VN-Index is expected to slide to the supporting level of 1,000 points or even lower within the next sessions.

Viet Capital Securities Company estimated the main index will decline within the first sessions this week, thus testing supporting levels.

For an optimistic scenario, the index may beat the 1,065-point level and approach a new high of 1,085 points. However, it is unlikely in the current situation.

 

Source: ThesaigonTimes

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