A majority of investors believe the Fed will cut interest rates at the end of this month, leading to gains in markets around the world. – Photo cafef.vn
HÀ NỘI — VN-Index could continue its short-term uptrend this week and may surpass the 1000-point milestone again thanks to macroeconomic stability and the US Federal Reserve's expected interest rate cuts, analysts have said.
On the Hồ Chí Minh Stock Exchange, the VN-Index inched down 0.33 per cent on Friday to close at 975.40 points, marking a slight increase of 0.01 per cent for the whole week.
On the Hà Nội Stock Exchange, the HNX-Index fell 0.15 per cent on Friday to 105.86 points. The index gained a total of 1.42 per cent last week.
An average of more than 186.5 million shares was traded each day last week, worth VNĐ3.7 trillion (US$158 million).
The figures were lower than the average of 177.3 million shares and VNĐ4 trillion in value seen in the previous week.
Nguyễn Trung Du, Director of the Business Development Section at VNDirect Securities Co., told tinnhanhchungkhoan.vn that the short-term trend of the local stock market was still positive, partly thanks to the rise of the US stock market, the expectation the Federal Reserve (Fed) will lower interest rates and positive macro-economic performance in the first half of the year.
“I think that the possibility of the VN-Index reaching 1,000 points may happen next week but we should not be too focused on the index but should focus on opportunities,” Du said.
"The positive trend means there are chances to find success in many different industries," he said.
“Personally, I still prefer seeking opportunities in heavy-weight stocks such as Mobile World Group (MWG), FPT Corporation (FPT) and Vietcombank (VCB),” Du said.
On July 11, the US stock market posted gains after Fed Chairman Jerome Powell informed investors about the possibility of interest rate cut at the end of this month. During the trading session, S&P 500 index surpassed 3,000 points for the first time in history before settling at 2,993.07 points, up 13.44 points (0.45 per cent) from the last session. The Dow Jones index also set a record high in the session before closing at 26,860.20 points, up 76.71 points (0.29 per cent). The Nasdaq index ended the session at a record high of 8,202.53 points, up 60.80 points (0.75 per cent).
Testifying in front of the Financial Services Commission of the US House of Representatives on July 11, Powell focused on global challenges to US economic growth amid uncertainties caused by President Donald Trump's administration’s trade tensions with other major world economies.
Powell said the Fed was getting ready to "take appropriate action" to maintain the record long growth period of the world's largest economy, showing the Fed is ready to cut interest rates when necessary.
Therefore, a majority of investors now believe the Fed will cut interest rates at the end of this month. This created a spill-over effect to stock markets across the world, including in Việt Nam, helping indices extend gains.
In the next few weeks, the publication of second quarter business results will be a major influence on the markets.
Nguyễn Hồng Khanh, head of the Analysis Department at Việt Nam International Securities Company (VIS), said the Fed’s goal of lowering interest rates, which would weaken the US dollar, will help ease pressure as Việt Nam was facing a potential trade deficit
According to Bảo Việt Securities Company (BVSC), the VN-Index may face volatility and correction pressure before increasing in the short run. — VNS