Market indexes and liquidity suffered a sudden fall in the final trading session last week, meaning that negative signals started to appear following a period of recovery.

 

Vietnam’s benchmark VN-Index on the Ho Chi Minh Stock Exchange dropped 0.70 percent to close at 917.97 points on November 23, increasing 1.2 percent on a weekly basis.

 

The HNX Index on the Hanoi Stock Exchange lost 0.27 percent to end on November 23 at 104.27 points. It rose a total 1.2 percent last week.

 

185 million shares were traded on average on the two local exchanges in each session, worth 4.2 trillion VND (182 million USD).

 

The market rebounded well early last week with blue-chips gaining ground, taking turns to help prevent the market indices from falling during the week.

 

However, when the VN-Index reached the high price range, selling pressure appeared and increased, causing the market to drop on November 23 with very poor liquidity. Buying demand was weak and massive selling caused the VN-Index to plunge.

 

Although foreign investors were net buying again in the last trading session of the week, reducing the risks for the coming week, investors should be prudent and carefully observe market movements.

 

Last week, the VN-Index was supported strongly by the recovery of Vingroup (VIC), Vinhomes (VHM) and Vincom Retail (VRE). Food and beverage groups such as Vinamilk (VNM) and Masan Group (MSN) also contributed significantly to the uptrend of the VN-Index. The banking sector also showed positive signs of recovery. The rise of the banking group last week was mainly down to TPBank (TPB) and VPBank (VPB).

 

Oil stocks such as Petro Vietnam Gas JSC (GAS), PetroVietnam Technical Services Corporation (PVS), PetroVietnam Drilling & Well Services Corporation (PVD) and Petro Vietnam Coating JSC (PVB) fell sharply in line with the negative movements of world oil prices.

 

World oil prices are plummeting, with both Brent and WTI at their lowest levels since early 2018.

 

Brent crude oil futures fell 80 cents on November 23 to 61.89 USD a barrel, having hit a session low of 61.52 USD, while US West Texas Intermediate (WTI) crude futures lost 1.04 USD to trade at 53.23 USD a barrel.

 

Nguyen The Minh, head of analysis at Yuanta Securities Vietnam Co. told tinnhanhchungkhoan.vn that at present, the world stock market was still in a downtrend, putting negative impact on the movements of the Vietnamese stock market.

 

“However, positive information from business results of listed companies is expected to boost investors’ confidence. Therefore, I expect a more positive scenario for the indices,” he said.

 

According to Bao Viet Securities Company (BVSC), next week, the VN-Index will keep rallying and move towards the 930-940 resistance zone.

 

“In the best-case scenario, if the index surpasses this resistance zone, the market is expected to move towards the next resistance at 955-965 points,” BVSC said.

 

“However, the market may still experience a drop early next week. The index is forecast to fall to the 909-913 support zone. It is then expected to bounce back from this threshold.” – VNS/VNA