Hanoi (VNS/VNA) - Even though the stock market is expected to continuerising, securities firms still warned of some corrections in the short-term dueto profit-taking pressure.

With the market inching higher for four straight months, Mirae Asset Securities(Vietnam) is optimistic about the country's stock market outlook, thesecurities firms said in its recent report.

The market benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) hadjumped 18.52 percent in the first five months. The index continuously hit newrecords in May despite rising worries over the fourth outbreak of COVID-19.

In its basic scenario, Mirae Asset maintained its expectation of this year'searnings per share (EPS) growth at 28 percent, lower than the market's positivelevel of 30 percent. With the strong rally, bullish sentiment and risingliquidity, the company expected that the VN-Index will break over 1,500 points,the most positive scenario, this year.

The market driving forces include the optimism of investors in containing thepandemic, stimulus packages, economic growth and business incomes that are notheavily affected by COVID-19, Mirae Asset added.

However, the securities firm sees some corrections in the short-term in Junedue to profit-taking pressure.

Similarly, Viet Dragon Securities Corporation said that the country's stockmarket will keep its rally but face some fluctuations this month.

The biggest support is the participation of individual investors, the companyadded.

Meanwhile, it also warned about the overloading issues on HoSE as the problemsoccurred since the beginning of June. And the rising COVID-19 cases might havemore negative effects on business results.

"The profit growth in 2021, which may be lower-than-expected regarding theongoing pandemic and social distancing orders, can be a negative factor for themarket in July or the third quarter," Viet Dragon said.

It also expected that the VN-Index will move in a range of 1,303 - 1,421points.

On the other hand, according to Yuanta Securities Vietnam One Member LimitedCompany, the VN-Index's price to earning ration (P/E) in the last four quartersis reaching the firm's target of 18x, meaning the market is gradually enteringthe more expensive period.

It also said that the VN-Index might start to correct at the closest supportiveterritory of 1,283 - 1,300 points.

Yuanta assessed that there is not much room for bank stocks and steel makers'stocks to grow in the short and mid-term. Therefore, it recommended investorsconsider continuing to hold and limit long positions, or maybe consider sellinga part of these stocks. 

On June 9, the VN-Index rose nearly 1 percent to 1,332.9 points after fallingfor two straight sessions./.