Shares to keep uptrend this week

June 05, 2023 - 01:49

Shares are predicted to continue its short-term uptrend thanks to the return of cash flow this week.


A transaction at Military Bank (MBB). MBB rose 6.8 per cent last week. — Photo MBB

 HÀ NỘI — Shares are predicted to continue their short-term uptrend thanks to the return of cash flow this week.

The benchmark VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) had risen 2.5 per cent last week.

An average of 917.3 million shares were traded on the southern exchange during each session last week, worth 15.6 trillion (US$664.3 million).

With the positive movement of banking and large-cap groups, the market surpassed 1,080 points and closed with a good gain in the last session of last week.

Liquidity also continued to increase, showing that investors' trading sentiment was more positive although profit-taking still presented in some sectors at the end of the session, said Việt Dragon Securities Co (VDSC).

“With this development, investors can expect the cash flow to continue to support and help the market gradually move to higher price ranges in the near future.”

“It is expected that selling pressure will appear more notably at the resistance zone of 1,100- 1,125 points of VN-Index. Therefore, investors can continue to hold or exploit short-term opportunities in stocks with good technical signals and attracting cash flow,” said Việt Dragon Securities Co (VDSC).

The market may be in a state of dispute, but it is expected to keep the short-term uptrend to continue testing the supply at 1,100-1,125 points in the near future. Therefore, investors can expect a short-term uptrend of the market, it said.

At the same time, it is possible to hold or exploit short-term opportunities in stocks with good technical signals and attracting cash flow. However, it is necessary to consider taking profits at stocks that have increased rapidly to the resistance zone or are under selling pressure from the resistance zone, said Việt Dragon Securities Co (VDSC).

The trading movements on the stock market last week showed that the domestic cash flow is gradually returning to the stock market in the context of falling interest rates, said Đinh Quang Hinh, head of the Macroeconomics and Market Strategy Department of VNDIRECT Securities Company (VNDirect).

The VN-INDEX has put one foot past the 1,080 point mark with liquidity touching VND18,000 billion in Friday's trading session, he said.

Next week, the VN-INDEX may retest the 1,080-point mark and if it successfully maintains above this threshold, the Vietnamese stock market will shift its status from sideways to "uptrend".

Therefore, investors need to closely observe the trading movements of the VN-Index this week to confirm whether the market has really entered an uptrend or not. Investors who have successfully disbursed in the previous weeks can continue to hold stocks, and at the same time limit buying stocks that have increased sharply recently because buying at high cost will be risky. The market entered a technical correction, he said.

Last week, the market increased sharply in points with a large contribution from the banking group. Many banking stocks witnessed strong gains in the past week such as: Techcombank (TCB) up 7.7 per cent, MB Bank (MBB) up 6.8 per cent, Vietcombank (VCB) up 3.2 per cent, and BIDV (BID) up 3 per cent.

The securities industry maintained an impressive gain in the context of market liquidity recovering, with VNDirect (VND) up 14.7 per cent, SSI Securities (SSI) up 6.9 per cent, and HCM Securities (HCM) up 3.8 per cent.

On the other side, some large-cap stocks fell such as Vinhomes (VHM) down 2.9 per cent, PetroVietnam Gas (GAS) and Vinamilk (VNM) both down 1.8 per cent and Vincom Retail (VRE) down 2.2 per cent. VNS