Transactions at Techcombank. Techcombank’s shares (TCB) rose 3.3 per cent last week. — Photo courtesy of Techcombank

HÀ NỘI — The VN-Index is said to have officially entered a short-term uptrend but analysts still warn that investors carefully consider the valuation of stocks, as well as not to hold speculative stocks with a high proportion to avoid risks in case of sudden downward correction.

The market benchmark VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) lost 0.52 per cent to end at 1,493.03 points.

The southern index had gained 2.8 per cent last week.

According to Vietcombank Securities Limited Company (VCBS), the VN-Index has officially entered a short-term uptrend, mainly thanks to the pull of banking stocks.

“VCBS believes that the trend of the VN-Index this week is to retest the support level around 1,490 points,” it said.

Investors who are keen on short-term profits are recommended to focus on trading in leading stocks in the market, but should carefully consider the valuation of each specific stock and should not hold speculative stocks with a high proportion, so as to avoid risks in case indices suddenly correct down.

Long-term investors can still look for opportunities in stocks with more attractive valuations compared to the general market average and still have positive growth potential in the fourth quarter of 2021 as well as in 2022, it said.

Việt Dragon Securities Joint Stock Company (VDSC) said that the VN-Index failed to gain in the last session of the week. The liquidity on Friday increased compared to the previous session, showing that short-term profit-taking pressure was gradually increasing while the cash flow was still moving cautiously at the psychological resistance level of 1,500 points.

Although many groups of stocks moved negatively, VN-Index still kept above the support area of ​​1,480-1,490 points, thanks to the gaining momentum of shares like Vingroup (VIC) and VPBank (VPB). It is expected that VN-Index will continue to be supported at the range of 1,480-1,490 points, VDSC said.

“Therefore, investors should temporarily slow down and wait for signals at the support zone of 1,480-1,490 to re-evaluate the market status. At the same time, it is also advisable to keep the portfolio at a balanced level, so as not to encounter unexpected risks,” VDSC said.

According to Saigon-Hanoi Securities Joint Stock Company (SHS), VN-Index and VN30-Index both set historic peaks last week. The liquidity of the whole week decreased slightly but was still higher than the 20-week average, showing that the buying force was maintained and the cash flow was still in the market looking for opportunities. 

From a technical point of view, VN-Index was still in an uptrend with the nearest target in the range of 1,530-1,550 points. However, during the ascent, vibrations can occur.

It is forecast that VN-Index may continue to increase towards the psychological resistance level of 1,500 points this week, SHS said.

Most of the major stock sectors saw growth last week. Banking stocks gained the most with typical gainers being Bank for Investment and Development of Vietnam (BID) up 2.4 per cent, Techcombank (TCB) rising 3.3 per cent, Asia Commercial Bank (ACB) gaining 3.4 per cent, Vietinbank (CTG) moving up 4.6 per cent, Military Bank (MBB) up 7.1 per cent, Saigon-Hanoi Bank (SHB) gaining 7.3 per cent, Vietcombank (VCB) up 8.1 per cent, and Vpbank (VPB) rising 8.3 per cent.

They were followed by financial securities stock such as VNDirect (VND) gaining 4 per cent, Việt Capital Inc (VCI) up 6.2 per cent, Saigon-Hanoi Securities Co (SHS) up 9.5 per cent, and SSI Securities Inc (SSI) up 10.3 per cent.

On the other hand, the oil and gas industry dropped the most with Bình Sơn Refinery (BSR) down 2.8 per cent, Viêt Nam National Petroleum Group (PLX) down 4.4 per cent, and PV Oil (OIL) down 5.5 per cent.

On the Hà Nội Stock Exchange (HNX), the HNX-Index lost 0.23 per cent to end Friday at 458.63 points. — VNS