Market might extend rallies this week

September 20, 2021 - 07:48
After opening the week on a negative note, the market climbed for the last three sessions, with the VN-Index successfully surpassing the psychological threshold of 1,350 points.
Sabeco's beer production line. The company shares surged 6.3 per cent in market capitalisation last week, supporting the market's uptrend. — VNA/VNS Photo

HÀ NỘI — After opening the week on a negative note, the market climbed for the last three sessions, with the VN-Index successfully surpassing the psychological threshold of 1,350 points.

The market was boosted by leading shares in steel, banking, securities sectors, and small/medium-cap stocks. These are positive signs suggesting the uptrend might continue this week.

The market benchmark VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) closed last week at 1,352.64 points, up 0.5 per cent, while on the Hà Nội Stock Exchange (HNX), the HNX-Index rose 1.34 per cent to 357.97 points. 

For the week, the VN-Index inched 0.54 per cent higher and the HNX-Index increased by 2.26 per cent.

The average liquidity per session on the two main exchanges decreased slightly compared to the previous week to VNĐ24.7 trillion (US$1.1 billion) per session. 

Trading value on HOSE decreased by 5.9 per cent to VNĐ105.9 trillion, with a drop of 0.4 per cent in trading volume to over 3.6 billion shares. On HNX, the trading value jumped 10.9 per cent to nearly VNĐ17.7 trillion, while the trading volume rose 11.1 per cent to 866 million shares.

Vietcombank Securities Company (VCBS) said that the benchmark VN-Index recorded a positive week after successfully breaking the resistance level of 1,350 points and trading volumes stayed high for the whole week. The index's rising momentum was driven by bank and financial stocks, and large-cap stocks like Hòa Phát Group (HPG) or FPT Corporation (FPT).

After a slight drop in the first two sessions of the week, the index rose for three consecutive sessions and officially surpassed the resistance level of 1,350 points after retesting it many times.

The liquidity in both trading volume and value was maintained at a high level. The market showed more optimistic signals after the VN-Index ended the week above 1,350 points, despite negative news from the Chinese economy and world stocks, as well as the developments of the ongoing COVID-19 pandemic in the country. 

Technical indicators in the past week were still in the neutral zone, so the index's gaining momentum may remain this week, said VCBS.

Meanwhile, BOS Securities Corporation (BOS) said that technically, given VN-Index surpassed the resistance level of 1,350 points in the last session, technical indicators showed quite positive signals for the market’s short-term trend. Besides, the cash flow recovered during the session and supported the trend.

The VN-Index is likely to challenge the old peak of 1,360 - 1,370 points in the next sessions. However, it may retest 1,350 points in the early sessions of next week before confirming the rally trend.

BOS recommended investors prioritise observing the market's reaction at 1,350 points and may consider increasing their short-term positions once the market corrects while the cash flow continues to recover in the coming sessions.

SSI Securities Corporation (SSI) said that the last trading session was influenced by exchange traded funds (ETFs). Therefore, the index needs another session closing above the 1,350 point-level as a signal to confirm the uptrend. Hence, the VN-Index is likely to continue to rally with the first target being the previous peak at 1,425 points.

On the other hand, Saigon - Hanoi Securities JSC (SHS) said that on the technical front, the index surpassed the threshold of 1,350 points to open new upside room for the market.

SHS forecasts that the benchmark may continue to rise to the resistance area of ​​1,375 - 1,380 points this week if the support level around 1,350 points is maintained.

In the worst-case scenario, if the VN-Index loses the psychological support level of 1,350 points, it may head to the next support zone in a range of 1,320-1,330 points.

Last week, ETFs restructured their portfolios, so foreign capital flows also witnessed strong fluctuations. For the whole market, foreign investors net sold a value of over VNĐ3.3 trillion.

Most of the major stock groups gained in last week. The group of consumer goods stocks increased the most with 4.6 per cent of market capitalisation, boosted by gains in Sabeco (SAB) up 6.3 per cent, and Masan Group (MSN) up 12.3 per cent.

It was followed by information technology (IT) and oil stock groups, up 3.7 per cent and 3 per cent, respectively, in market capitalisation. — VNS