Will market continue its downward trend this week?

April 19, 2021 - 06:00
Some analysts from securities firms expected that the market's bullish trend will continue this week, while others were more cautious and see a downward trend dominating the market.
No Va Land Investment Group's head office in Nguyễn Du Street, District 1, Hồ Chí Minh City. Photo vinhomecitys.com

HÀ NỘI — The market ended lower last week as many large-cap stocks faced selling pressure after the VN-Index hit a new high of over 1,255 points. Some analysts from securities firms expected that the market's bullish trend will continue this week, while others were more cautious and see a downward trend dominating the market. 

The market benchmark VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) fell 8.54 points, or 0.68 per cent, in Friday's trade to 1,238.71 points. The index hit a record high of 1,255.87 points on Wednesday. 

For the week, the index still rose slightly by 0.57 per cent, while foreign investors net sold a value of over VNĐ2.4 trillion. 

Analyst from Saigon - Hanoi Securities JSC (SHS) said that the third straight weekly gain of the market and a new record in liquidity showed investors' big interest during this period. However, based on Elliott Wave Theory, the index was likely at the end of wave 5 last week and is about to turn to corrective waves with a closest target being around 1,135 points. 

Therefore, a downward trend might influence the market this week, SHS added. 

The index struggled and strongly fluctuated around 1,250 points, but failed to break through the level in the last session. The market breadth, besides some blue-chip stocks in real estate sectors and steel stocks, was negative last week.

Trần Xuân Bách, a senior stock analyst from Bảo Việt Securities Company, also expected that the market might continue to be weighed by selling pressure this week. 

"The VN-Index still receives support from the zone of 1,225 - 1,232 points in some early sessions this week," Bách wrote in a daily report to customers. 

"The market is likely to be influenced by some large-cap stocks, as well as a strong division of stock groups during this period."

Meanwhile, analysts from Viet Dragon Securities Corporation (VDSC) were more optimistic about the market as large cash inflows into the market in the last session limited the losses. 

Sharing the positive view, MB Securities JSC (MBS) said that the last session's steep fall has boosted cash flows into the market for bottom fishing, creating a notable recovery. 

On the technical front, the upward trend, which has extended over the last two months, will continue with the support territory in the short-term being 1,220 points, MBS added. 

The HNX-Index on the Hà Nội Stock Exchange (HNX) also declined 1.02 per cent on Friday to 293.11 points. For the week, the index fell 0.23 per cent. 

Real estate stocks posted outstanding performance last week as it went against the market's trend in most sessions. Followed by material stocks. 

Of which, Vingroup JSC (VIC), No Va Land Investment Group Corporation (NVL) and Hoà Phát Group (HPG) contributed the most to help the market cap losses. These stocks climbed 16.29 per cent, 4.73 per cent and 4.46 per cent, respectively. 

On the contrary, top three stocks influencing the market's trend were Vietnam Rubber Group JSC (GVR), JSC Bank For Investment and Development of Vietnam (BID) and Vietnam Dairy Products JSC (VNM).

In general, Việt Nam's stock market was not so positive last week despite the benchmark increasing slightly as selling pressure spread to all sectors and foreign investors net sold a value in the trillions of đồng. — VNS