VN-Index said to soar this week

June 13, 2016 - 01:00

Experts from most securities companies expect the VN-Index to hit a two-year peak level of 640 this week.

An investor tracks the stock movement on Sài Gòn Securities Inc floor in Hà Nội. VN-Index soars to its highest level of the year so far. —VNS Photo Đoàn Tùng
Viet Nam News

HÀ NỘI— Experts from most securities companies expect the VN-Index to hit a two-year peak level of 640 this week.

Nguyễn Thế Minh, in charge of market analysis at Bản Việt Securities Company (VCSC), said investor confidence has helped the VN-Index soar to its highest level of the year so far. Ending Friday, the index closed at 629.84, up 1.3 per cent compared with the previous week.

Notably, in the June 9 session, the VN-Index climbed to 631.26 point, its highest level in 2016.

Nguyễn Hồng Khanh, Head of Analysis at SBS Securities said last week’s results were better thanks to positive news coming from the industries of oil, construction and steel throughout the week.

The crude oil price reached over US$50 per barrel in the middle of the week, its highest in three months, leading to an early rally in local oil and gas stocks including PetroVietnam Gas Corp (GAS), PetroVietnam Drilling and Well Service Corp (PVD), PetroVietnam Technical Services Corp (PVS) and PetroVietnam Coating Corp (PVB).

Meanwhile, two steel producers that benefited from the zero per cent tax from the US market, Hòa Phát Group (HPG) and Hoa Sen Group (HSG), rose sharply.

Meanwhile the revision of State Bank of Việt Nam’s Circular No 36 which reduced the tight credit for the realty market helped many realty stocks grow.

While most realty stocks rose lightly, An Dương Thảo Điền JSC (HAR) grew about 10 per cent over the previous week.

To conclude all the positive signals, Khanh said the results were not only boosting local investors’ confidence, but also made foreign investors increase their net buying.

Foreign investors were net buyers of VNĐ411billion, contributing significantly to the market boom.

Of which, the southern bourse of HCM Stock Exchange (HoSE) accounted for VNĐ375.63 billion. Stocks of Military Commercial Bank (MBB) were foreigners’ best buy last week with the buying value of VNĐ142.4 billion. Currently, foreign buyers have bought the maximum 20 per cent for foreigners in the bank.

On the northern bourse of Hà Nội Stock Exchange (HNX), foreign investors were net buyers in four out of five trading days last week with a total value of VNĐ35.74 billion, which contributed to help HNX-Index up 84.85 points, the highest level of the year so far.

Topping the list of foreign investors’ net buying on HNX were PetroVietnam Technical Services Corporation (PVS), then Viglacera Hạ Long JSC(VHL), Sao Vàng Rubber Joint Stock Company (SCR) Đà Nẵng Airports Services Joint Stock Company (MAS) and Petrolimex Petrochemical Corporation - JSC (PLC).

In further forecasts, VCSC’s Nguyễn Thế Minh thought that cash flow was back to mid-caps and small-caps stocks as these stocks had not yet reached the best potential so investors could look for more profit opportunities on them, especially real estate stocks actively benefiting from the revision of Circular No 36 of the State Bank.

According to financial website, ten of the most attractive stocks in the market this week will include Việt Nam Joint Stock Commercial Bank for Industry and Trade (CTG), F.I.T Investment Joint Stock Company ( FIT), HAR, Hoà Phát Group Joint Stock Company ( HPG), Bà Rịa-Vũng Tàu House Development JSC (HDC),Từ liêm Urban Development Joint-Stock Company (NTL), Sơn Hà Sài Gòn  Joint Stock Company (SHA), Trường Thành Furniture Corporation (TTF), Thăng Long Investment Group JSC (TIG) and Vingroup Joint Stock Company (VIC).

The website chose the stocks under careful technical analysis of trading and liquidity transactions and experienced recommendations from securities experts. — VNS