Shares unlikely to see a new drop this week

November, 22/2021 - 07:52

Market analysts forecast that the VN-Index is unlikely to see a new drop in the short term as the demand for stocks remains significant.

 

Workers at a factory of steel company Hoà Phát Group (HPG). HPG fell 12.1 per cent last week. VNA/VNS Photo Đức Dũng

HÀ NỘI — Market analysts forecast that the VN-Index is unlikely to see a new drop in the short term as the demand for stocks remains significant.

The market benchmark VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) lost 1.19 per cent to end last Friday at 1,452.35 points.

The average trading volume on HOSE was more than 1.13 billion shares per session, up 11.65 per cent compared to the previous trading week.

Vietcombank Securities Limited Company (VCBS) said that the VN-Index experienced a trading week with many fluctuations last week. In the first sessions of last week, the index struggled and moved sideways around 1,470 points without any strong increase or decrease.

However, in the last sessions of the week, after many attempts to reach the threshold of 1,480, selling and profit-taking dominated the market and focused mainly on large-cap stocks.

According to VCBS, Việt Nam's stock market has begun to show signs of a downward correction to accumulate again after the rally surpassed the 1,400-point mark at the end of October.

Forecasts about a global economic downturn and VN-Index's consecutive failure to conquer the resistance level of 1,480 points was making investors' sentiment gradually more cautious, it said.

“A new price level is gradually being established according to the current sideways accumulation trend of the index around 1,450 and it is unlikely that a new downtrend will appear in the short term,” it said.

According to Rồng Việt Securities Joint Stock Company (VDSC), at the end of the Friday session, cash flow was injected strongly into the market, but the stocks were still under profit-taking pressure.

“As the market has not stabilised again, investors can consider new disbursement, as well as consider gradually selling stocks with weak cash injection to ensure the safety of their portfolios."

According to Saigon-Hanoi Securities Joint Stock Company (SHS), after three consecutive gaining weeks, VN-Index had to correct again last week.

The index's drop was not large, but the liquidity set a new record, showing that the selling pressure was really strong. Fortunately, the demand was high and stopped the market from falling deeply.

“From a technical point of view, VN-Index still ended the week above the psychological and technical support level of 1,450 points, so there is a possibility that the index will return to its upward momentum towards the psychological resistance of 1,500 points,” it said.

However, fluctuations may also occur more frequently in the coming period. This week, the VN-Index may rise again to move towards the psychological resistance level of 1,500 points.

Most of the major stock sectors dropped last week. Materials stocks dropped the most with steelmaker Hoà Phát Group (HPG) falling down 12.1 per cent, Nam Kim Group (NKG) dropping 15.7 per cent and Hoa Sen Group (HSG) losing 16.1 per cent.

The oil and gas group also performed poorly. PetroVietnam PetroChemicals and Biofuel JSC (PVB) lost 1.7 per cent, PV Oil (OIL) declined 5.2 per cent, PetroVietnam Drilling and Well Services Corporation (PVD) fell 7.2 per cent, PetroVietnam Technical Services Corporation (PVS) was down 10.8 per cent and Bình Sơn Refinery (BSR) fell 12.1 per cent. VNS

 

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