Market expected to inch higher this week

Must Read

A man watching the stock market’s movement on his computer. Photo

HÀ NỘI — Many securities companies are optimistic about the stock market this week, as companies will soon release their first-quarter business statements and a support package worth VNĐ340 trillion (US$15 billion) will also be disbursed.

Last week, news about the arrest of Trịnh Văn Quyết, former CEO of FLC Group and Bamboo Airways, hit the market’s sentiment. However, the stock market still ended the choppy week on a positive note as risk appetite improved.

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index surged 24.29 points, or 1.63 per cent, in the last trading session to break above the psychological level of 1,500 points. Meanwhile, the HNX-Index on the Hà Nội Stock Exchange (HNX) closed last week at 454.1 points, up 4.48 points, or 1 per cent.

For the week, the VN-Index increased by 1.2 per cent, marking its third straight weekly gain, while the HNX-Index declined 1.66 per cent.

The market liquidity was improved, but still below the 20-week average.

On the other hand, foreign investors continued to be net buyers on the market last week after net bought a value of over VNĐ1.01 trillion.

Saigon-Hanoi Securities JSC (SHS) said that the VN-Index gained for the third consecutive week with improved liquidity, showing that cash still flew strongly into the market.

The securities firm saw that investor sentiment has been improved.

Investors are turning to the first-quarter business results and enterprises’ business plans which will be announced at the Annual General Meeting of Shareholders.

In addition, the economic stimulus package worth VNĐ340 trillion will be disbursed soon and is also attracting attention.

These two factors are expected to support the market to continue to reach new highs, the firm added.

SHS forecasted that the market benchmark VN-Index is likely to continue gaining points to head to the next resistance area of 1,530-1,550 points.

Investors who took long positions when the market tested the support zone of 1,425-1,450 points in the session of March 14 and March 15 can continue to hold their current portfolio and consider taking profits if the market moves to the strong resistance zone, SHS recommended.

Similarly, SSI Securities Corporation (SSI) said that after the rally in the last trading session, the benchmark is currently facing a resistance area of ​​1,515 – 1,520 points.

As the trading volume increases and surpassed the 50-day moving average, the VN-Index is likely to break over the resistance zone and head toward the next resistance level of 1,537 points.

Meanwhile, Mirae Asset Securities Việt Nam said that earlier last week, rumours related to FLC’s former CEO had sent a shiver through the market, causing medium and small-cap stocks to face strong selling pressure with many of these stocks hitting floor prices.

The sell-off pushed the VN-Index back to 1,483 points.

Then, investors’ sentiment improved, helping the index to stabilise around 1,490 points for the next three sessions before breaking out and gaining more than 24 points last Friday.

As the VN-Index surpassed the threshold of 1,500 points, it supports the short and medium-term trend to be bullish.

If it continues to inch higher, VN-Index will meet a remarkable resistance area of ​​1,520 – 1,534 points.

In the past week, stock groups’ performance was strongly divided.

While information technology, consumer service, consumer goods and banking sectors posted big gains in market capitalisation, energy and materials sectors lost 2.4 per cent and 1.5 per cent, respectively. VNS

- Advertisement -spot_img


Please enter your comment!
Please enter your name here

- Advertisement -spot_img

Latest News

Flower festival in Ho Chi Minh City’s Phu My Hung attracts multiple visitors

Despite having yet to be inaugurated, a flower festival with the theme ‘Xuan Phon Vinh’ (Prosperous Spring) in the...
- Advertisement -spot_img

More Articles Like This

- Advertisement -spot_img