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Share to keep positive trend on rising liquidity

Update: August, 02/2021 - 06:51

An employee of Hoà Phát Group (HPG) spraying disinfectant throughout the factory. HPG rose  3.3 per cent last week. Photo courtesy of Hòa Phát Group

HÀ NỘI — Shares are expected to move positively this week on significant growth of both scores and liquidity, brokerages said.

On the Hồ Chí Minh Stock Exchange, the VN-Index increased 1.27 per cent to close Friday at 1,310.05 points, expanding the weekly gain to 3.3 per cent.

An average of 523 million shares were traded on the southern exchange during each session last week, worth VNĐ17 trillion (US$738.6 million).

“The VN-Index exceeded the 1,300-point mark last Friday with an increase in liquidity,” said experts from BOS Securities Joint Stock Company (BOS).

“Technical indicators all show the possibility that the market will continue to gain in the coming sessions. Most likely, VN-Index will maintain its uptrend and head to the area of ​​1,330 points next week," they said.

Sharing the same view, MB Securities Joint Stock Company (MBS) said the stock market had gained significantly in both scores and liquidity, along with strong net buying of foreign investors.

“Cash inflow was strong and market breadth was also positive. Liquidity reached the highest level in the past three weeks. Foreign investors had returned to be net buyers with a total value of nearly VNĐ500 billion in the week,” MBS said.

“The market has entered a new uptrend thanks to the support of liquidity and the boost from the group of large-cap stocks,” MBS said.

An expert from Saigon-Hanoi Securities Joint Stock Company (SHS) said this week, the market would likely enter a struggling phase when the profit-taking pressure increases in the resistance area of ​​1,300-1,350 points.

Construction materials stocks gained the most last week. Pillar stocks in this group increased strongly such as Hoà Phát Group (HPG), up 3.3 per cent, Hoa Sen Group (HSG), up 6.7 per cent, and Nam Kim Group (NKG), up 7 per cent.

They were followed by information technology stocks, with gainers such as FPT Corporation (FPT), up 3.9 per cent, and CMC Telecom (CMG) up 18.2 per cent.

Bank stocks also performed well with notable gainers of Vietcombank (VCB), rising 1 per cent, Bank for Investment and Development of Vietnam (BID) gaining 2.2 per cent, Techcombank (TCB) rising 3.2 per cent, Military Bank (MBB) gaining 4.1 per cent, VPBank (VPB) climbing 4.3 per cent, Saigon-Hanoi bank (SHB) up 5.3 per cent, Vietinbank (CTG) up 5.8  per cent and Asia Commercial Bank (ACB) increasing by 9.5 per cent.

The consumer goods sector rose thanks to a 5-per cent increase in Hà Nội Beer Alcohol and Beverage Joint Stock Corporation (BHN), a 3.5-per cent increase in Saigon Beer Alcohol and Beverage Company (SAB), and a 12.6-per cent increase in Masan Group (MSN).

The remaining groups all had positive growth such as industrial, oil and gas, consumer services, finance, community utilities, pharmaceutical and medical services.

In the first six months of 2021, the stock market made impressive growth with the VN-Index being the world's strongest rising index with 15.8 per cent, said financial news site tinnhanhchungkhoan.vn.

The steep decline of the local stock market as the coronavirus ravaged economies lured many new punters to the market.

The number of newly opened trading accounts in six months reached 619,911 accounts, an increase of 58 per cent compared to the number of 2020. According to the Vietnam Securities Depository Center, June witnessed an unprecedented large number of 140,054 new personal accounts.

According to VSD, by the end of June, there were 3.4 million securities accounts of individual investors opened.

“The index is expected to gain but there will still be a strong divergence among stocks. The index needs to break through the 1,296-1,305 resistance zone to challenge the 1,350-1,380 resistance zone in the short term,” said Bảo Việt Securities Co.

“Banking, securities and steel stocks may slowly recover and accumulate to create a new short-term base. Capital flow will focus more on mid-cap and small-cap stocks in industries such as real estate, seaports and exports,” it said.

“Investors should increase the proportion of stocks in the portfolio to 40-50 per cent. They may consider increasing short-term positions during fluctuations and corrections in the coming sessions,” it said. VNS

 

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