Saturday, August 8, 2020 12:55:56 AM - Markets open
VN-INDEX 841.46 +1.42/+0.17%
HNX-INDEX 112.78 -0.57/-0.51%
UPCOM-INDEX 56.22 +0.10/+0.18%
Local stocks to struggle with increased caution
Vietnam News - 6/15/2020 1:17:48 PM
 (0 ratings. You must sign in to rate.)
 The Vietnamese stock market is forecast to struggle this week with rising caution among investors as they wait for the market to reach its balance point.
 
Việt Nam’s benchmark VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) last week ended at a three-week low of 863.52 points, falling total 25.6 per cent during the week.
 
Market trading liquidity increased sharply from the previous week. An average of nearly 589 million shares were traded in each trading day, worth VNĐ8.1 trillion (US$347.6 million).
 
“The market ended a five-week gaining streak as the VN-Index gave up the resistance of 910 points on pressure from the international markets,” Sài Gòn-Hà Nội Securities (SHS) said in its weekly report.
 
The VN-Index posted its biggest loss in seven weeks on Thursday as it tumbled 3.63 per cent as a large-scale sale was triggered following a pessimistic economic outlook by the US central bank.
 
The market was even pushed back to a one-month low of 841 points on Friday but purchasing for discounted stocks helped narrow the loss.
 
“The index finished the week in the zone of 840-880 points so there will be struggles in coming days,” SHS said.
 
The VN30 futures, which matures on June 18, ended last week at 805 points while its underlying asset VN30-Index finished at 807.76 points.
 
“The gap between the blue-chip tracker VN30-Index and its futures indicates investors are becoming cautious,” SHS said.
 
The US central bank Federal Reserve at its meeting on Wednesday night kept interest rates unchanged and delivered a gloomy economic outlook for the world’s largest economy.
 
Worries about the second coronavirus wave on states’ re-opening and emerging tensions between the US and China had a negative impact on market sentiment.
 
According to analysts, the confidence in Vietnamese shares may be dragged down as strong domestic purchase, most of which comes from “F0” investors – new and unexperienced ones – has kept the VN-Index rallying since late March.
 
Prior to Thursday, the VN-Index had gained a total of 36.5 per cent in 2.5 months to a 3.5-month high of 900 points from its 2.25-year low of 659.21 points.
 
More than 100,000 new accounts were opened in the past three months, with about 68,600 accounts being registered in March and April.
 
Domestic individual investors have been hunting beaten-down stocks during the COVID-19 pandemic, keeping the Vietnamese stock market progressing.
 
But amid pressure from international stocks, individual investors are the most vulnerable due to a lack of experience and information.
 
“When the VN-Index cannot conquer 900 points, it makes investors believe the market is running out of momentum,” and “large-cap stocks are stalling,” analyst and trader Nguyễn Hồng Điệp told ndh.vn.
 
“Secondly, investors look at the US stocks and any downtrend of the US market worries them, thus, triggering the sell-off,” he said.
 
The US stock market progressed on Friday night as bargain hunters returned to scoop stocks up following their big losses the previous day.
 
High individual purchasing power means the market bubble inflates, so it must decline to make the market grow sustainably, said.
 
Phan Dũng Khánh, director of investment consultancy at Maybank Kim Eng, said the 2.5-month rally has made stocks become more expensive given the downtrend of the macro-economy.
 
A downtrend is needed to help the market increase in the long term, he said, as individual investors will run from the market and leave the room for institutional ones to fill in.
 
While individual investors sought exit from the market, foreign ones net-bought total nearly VNĐ418.5 billion worth of local shares last week. Net foreign selling was VNĐ315 billion in the previous week.
 
Aside global stocks, the shake-up in the US-based exchange-traded fund VanEch Vectors Vietnam ETF’s portfolio will also affect the market trading this week, Bảo Việt Securities (BVSC) said in a note.
 
The fund on Saturday announced Vietnamese stocks are kept at 15 in the list of 25 investees but total weight of Vietnamese shares fell to 67.48 per cent from 67.98 per cent.
 
The fund will reduce its ownership at residential property firm Vinhomes (VHM), aviation firm Vietjet (VJC), consumer staples firm Masan (MSN), PetroVietnam Power (POW), sugar company Thành Thành Công-Biên Hòa JSC (SBT), and electrical firm Gelex (GEX).
 
Stakes in dairy producer Vinamilk (VNM), steel maker Hòa Phát (HPG), insurer Bảo Việt Holdings (BVH) and SSI Securities (SSI) will be raised.
 
“The VN-Index is expected to recover and head toward the resistance zone of 883-891 points early next week,” Bảo Việt Securities (BVSC) said.
 
The index is forecast to “receive support from the zone of 840-850 points,” the company said. — VNS
 
Read original article here
 
Newer News
07/08 Derivatives market sees liquidity rise in July
04/08 VN shares advance on hopes for virus block
04/08 Maximum 130,700 USD fine for listing violations: Draft decree
21/07 Stock market celebrates 20th birthday
18/07 Shares drop further on low liquidity
15/07 New regulations about corporate bond issuance
13/07 Stocks to struggle on mixed Q2 earnings report releases
12/07 Rallies end as profit-taking weighs on large-caps
07/07 VN stocks advance as securities, banking and aviation industries rise
07/07 Corporate bond market to boom in second half
Older News
12/06 VN shares post biggest loss in two months
10/06 VN stocks off from 3-month high, dragged by banks and retailers
10/06 New traders flock to market
08/06 Opportunities still exist but market will struggle to make big advance
08/06 Reforms needed to attract foreign portfolio investment: fund manager
05/06 Securities fuel shares, investors seek profits in large-caps
04/06 Markets rise on the back of large caps, banks
02/06 Stock market may not enjoy lower lending rate impact: analysts
29/05 Local stocks gain slower, as banks and petrochemical firms keep increasing
14/05 VN stocks slide, but market prospects remain positive
 
Newsletter Signup
Top Stories
GDP forecast to grow 3.8 percent this year
New regulations about corporate bond issuance
Reference exchange rate remains unchanged
New traders flock to market
Reforms needed to attract foreign portfolio investment: fund manager
Market Update
Last updated at 3:09:56 PM
VN-INDEX 841.46 +1.42/+0.17%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.