The short-term uptrend of the stock market remains positive this week as investors may head to companies with third-quarter earnings prospects but some corrections are needed to help Vietnamese shares consolidate before rising further.
Vietnamese shares rebounded on Thursday as fears over a US-EU trade war eased and a foreign net purchase of local blue chips cushioned the market.
Vietnamese stock indices are regaining momentum for recovery and expected to remain upbeat during upcoming trading sessions thanks to the improvement of liquidity and the return of cash flow, analysts said.
Shares struggled to maintain last week's upward trend on the two local bourses with a slight gain on Monday, experiencing strong volatility among big differentiation between large-caps’ prices.
Though Vietnamese shares bounced back strongly in the last two sessions of last week, analysts and brokerage firms remained skeptical that the stock market had actually overcome a difficult period and begun its consolidation.
Vietnamese shares ended Thursday on a positive note following the improvement of global markets as trade war fears were soothed by news of potential talks between China and the US.
A large-scale sell-off sank Vietnamese shares on Wednesday after China-US trade tensions increased and dampened investor confidence in the world’s economic prospects.
The derivatives market has grown strongly over the last three months as investors switch from stocks to derivatives to avoid short-term risks on the stock market.
Massive selling pressure hit many large-caps, drowning the market, making VN-Index become the biggest loser index in Asia during Tuesday session.
Vietnamese shares extended losses for a second session on Wednesday as last-minute selling drove capital towards assets other than stocks, showing low investor confidence.