Investors at MayBank Kim Eng Securities Company (Photo: VNA) Hanoi (VNS/VNA) - Shares will continue to rise this week asinvestor sentiment remains positive, analysts said, driven by expectations thatgood earnings reports will be released in the “shareholder meeting season.”
Analysts with BIDV Securities Corp (BSC) say that the highexpectations of good first quarter performances is directing the flow of moneyin the market towards companies that had been forecast to do well but are yetto produce expected figures.
For example, steel producers’ stocks are moving up afterunderperforming for a while.
“The stock market will likely increase this week as listedlarge-cap firms are about to reveal their first quarter performances,” saidNguyen Ngoc Lan, head of the brokerage division at Agribank Securities Company.
The market could increase further after blue chips ended on April 7in the positive territory and foreign investors remained net buyers thoughtheir purchases declined sharply, Lan said.
Foreign investors recorded a net buy value of 225.6 billion VND inVietnam’s stock market last week, down 74.5 percent from the previous week.
It is not surprising that the benchmark VN Index has reached newheights recently, said Vu Minh Duc, head of individual customers division withViet Capital Securities Company (VCSC).
The benchmark index has entered a development stage that couldrange between six and 12 months since it successfully overcame the mid-termresistance range of 690-695 points, he said.
The short-term resistance level for the VN Index is 730 points fornow and 750 points for the next one or two months, Duc added.
However, BSC analysts have warned that the market could also facea correction if the released earnings reports fail to meet investor expectations.
The market could also be pulled down by the pressure ofprofit-taking that targets stocks that have risen recently based on forecastfirst-quarter earnings.
“The positive effects created by expectations for good earningsreports can decline…, then stock performances could be a mixed bag.
“Investors should look for opportunities in stocks that have good,basic background information or are supported by good business news such asM&A deals and restructuring processes,” VCSC analyst Duc said.
An example last week was Sacombank. The bank’s shares have soarednearly 18 percent since March 28 after speculation emerged on its restructuringprocess.
Vietnam’s benchmark VN Index on the HCM Stock Exchange was up 0.7 percentto close Friday at 727.95 points. The benchmark index finished 0.8 percenthigher than the previous week.
The minor HNX Index on the Hanoi Stock Exchange fell 0.6 percentto end Friday at 90.15 points. The northern market index has dropped 0.7 percentweek on week.
Market trading liquidity increased from the previous week with anaverage of more than 259.4 million shares worth 4.9 trillion VND (219 millionUSD) being traded in each session.
Trading volume and trading value rose 0.4 percent and 11.2 percentrespectively over the previous week.-VNA
Analysts with BIDV Securities Corp (BSC) say that the highexpectations of good first quarter performances is directing the flow of moneyin the market towards companies that had been forecast to do well but are yetto produce expected figures.
For example, steel producers’ stocks are moving up afterunderperforming for a while.
“The stock market will likely increase this week as listedlarge-cap firms are about to reveal their first quarter performances,” saidNguyen Ngoc Lan, head of the brokerage division at Agribank Securities Company.
The market could increase further after blue chips ended on April 7in the positive territory and foreign investors remained net buyers thoughtheir purchases declined sharply, Lan said.
Foreign investors recorded a net buy value of 225.6 billion VND inVietnam’s stock market last week, down 74.5 percent from the previous week.
It is not surprising that the benchmark VN Index has reached newheights recently, said Vu Minh Duc, head of individual customers division withViet Capital Securities Company (VCSC).
The benchmark index has entered a development stage that couldrange between six and 12 months since it successfully overcame the mid-termresistance range of 690-695 points, he said.
The short-term resistance level for the VN Index is 730 points fornow and 750 points for the next one or two months, Duc added.
However, BSC analysts have warned that the market could also facea correction if the released earnings reports fail to meet investor expectations.
The market could also be pulled down by the pressure ofprofit-taking that targets stocks that have risen recently based on forecastfirst-quarter earnings.
“The positive effects created by expectations for good earningsreports can decline…, then stock performances could be a mixed bag.
“Investors should look for opportunities in stocks that have good,basic background information or are supported by good business news such asM&A deals and restructuring processes,” VCSC analyst Duc said.
An example last week was Sacombank. The bank’s shares have soarednearly 18 percent since March 28 after speculation emerged on its restructuringprocess.
Vietnam’s benchmark VN Index on the HCM Stock Exchange was up 0.7 percentto close Friday at 727.95 points. The benchmark index finished 0.8 percenthigher than the previous week.
The minor HNX Index on the Hanoi Stock Exchange fell 0.6 percentto end Friday at 90.15 points. The northern market index has dropped 0.7 percentweek on week.
Market trading liquidity increased from the previous week with anaverage of more than 259.4 million shares worth 4.9 trillion VND (219 millionUSD) being traded in each session.
Trading volume and trading value rose 0.4 percent and 11.2 percentrespectively over the previous week.-VNA
VNA
