Hanoi (VNA) - The VN Index, Vietnam’s benchmarkstock index, could fall back to the 675-680 range if it fails to reach 690-692points, according to analysts and securities firms. The HCM Stock Exchange’s index on January13 dropped 0.3 percent to finish at 685.06 points, extending losses for asecond day. However, the southern market index finished 0.8 percent higher thanthe previous week’s closing. The HNX Index on the Hanoi Stock Exchange increased veryslightly to close at 83.34 points, ending with a weekly gain of 1.5 percenton January 13. Meanwhile, market trading liquidity fell from the previoustrading week. An average of 127 million shares was traded in each session, a week-on-weekdecrease of 4.7 percent. Daily trading value inched down 0.3 per cent to nearly2.52 trillion VND (112 million USD). “Investors made some attempts to lift the stock indices on January13 morning, however, when they realised the VN Index could not reach theresistance range of 690-692 points, they increased selling during the afternoontrading session, resulting in the VN Index closing lower than the previousday’s level,” said Chau Thien Truc Quynh, Viet Capital Securities’ head ofbrokerage division. The benchmark would make attempts to test the resistancelevel again, but it could fall back to the support range of 675-680 points ifit fails, she said, adding that market trading will remain weak from now untilthe Tet Lunar New Year, as investors focus on earning profits and convertingthose profits into cash to conclude the year. Sai Gon-Hanoi Securities Corp (SHS) shares the view that thebenchmark index made a weekly gain last week, but weekly growth was lower,proving that investors’ selling was relatively strong when the benchmarkapproached the testing level. Further, investor confidence was low as investors tended tostand by market trading prior to the Tet holiday, lowering liquidity from theprevious week, the company said in a note. “The VN Index will fluctuate this week with lower tradingliquidity, and it will face the support range of 673-674 points and the testingrange of 690-692 points.” Fertiliser producers, banks, energy firms and propertydevelopers will attract a lot of attention from investors this week, accordingto analysts. Chau Thien Truc Quynh, analyst at Viet Capital Securities,said that fertiliser producers, such as PetroVietnam Fertiliser and ChemicalCorp (DPM) and PetroVietnam Ca Mau Fertiliser JSC (DCM), will rise further onexpectations that their future earnings would increase after the Ministry ofIndustry and Trade received approval for its proposal on reducing value-addedtaxes for those companies. DPM gained 8.7 percent in the last two sessions, as DCMjumped 9 percent during the same period. The proposal would first benefit fertiliser companies withtop market shares, firm reputations and advantages over business scales, shesaid. Fertiliser stocks are also attractive, as they have fallen during 2016,and those companies often pay high and stable dividends to shareholders. According to Nguyen The Minh, Sai Gon Securities Inc’ssenior analyst on the capital market, despite recent falls, bank stockscontinue rising on expectations for strong quarterly earnings, while banks willbe able to lend more after the State Bank of Vietnam raises their capitalloan-to-deposit ratio (LDR). Also, energy stocks will help lift the stock market onhigher oil prices, and property developers are expected to deliver positivequarterly earnings reports and attract investors, he said.-VNA