An investor at Tan Viet Securities Inc. (Photo: tinnhanhchungkhoan.vn)Hanoi (VNA) - Vietnamese shares will continue to rise this week, according to securitiesanalysts and brokerage companies, as foreign investors buy local assets.Positive first-quarter earnings reports and macroeconomic indicators to bereleased soon are also expected to influence this trend.
On March24, the benchmark VN-Index on the HCM Stock Exchange edged up 0.4 percent toclose at 722.14 points, reaching a fresh ten-year high. The southern marketindex has gained a total of 1.3 percent in the last two days.
TheHNX-Index on the Hanoi Stock Exchange advanced 1.6 percent, the highest dailygrowth since January 3, to end at 91.37 points. The northern market index hasincreased by a total of 1.8 percent in the past two sessions.
March24’s gains also helped the VN and HNX Index finish up 1.6 percent and 3.4 percent,respectively, compared to the previous week’s closing levels.
Nearly272.3 million shares were traded in each session last week, worth 5.1 trillionVND (226.8 million USD). Daily average trading liquidity rose from the previousweek’s figures by 23.6 percent in trading volume and 13.5 percent in tradingvalue.
Accordingto securities analysts, positive foreign investor confidence in local stockswas the major factor that lifted the benchmark VN Index across the challenginglevel of 720 points.
Foreigninvestors last week recorded a net buy value of more than 1 trillion VND, 5.2times the previous trading week’s figure. On the HCM Stock Exchange, foreign investorshave a net buy value of 1.2 trillion VND so far in March.
“Foreigninvestors do not seem too concerned about the US Fed’s interest rate increasesas they were when the previous rate hikes were made,” said Tran Xuan Bach, ananalyst at Bao Viet Securities Company. “They have gotten used to those ratehikes. They have reacted and made moves in advance in order to prepare for theFed’s rate increases at the end of each quarter.”
“Therefore,if nothing happens unexpectedly, the next two rate hikes will not have negativeimpacts on foreign investment in Vietnam’s securities market.”
TheVN Index will also receive support from large-cap companies that are expectedto provide good earnings reports for the first quarter of 2017, according toNguyen Ngoc Lan, head of brokerage division at Agribank Securities Company.
Forexample, bank stocks trading liquidity increased strongly in the past week, Lansaid. “Normally, the trending of bank stocks will last long and have widespreadpositive impacts on the stock market, therefore, local stocks will maintainpositive growth in the short-term ahead,” he added.
Lastweek, bank stocks had impressive performances. Vietcombank (VCB) rose total 2.7percent after five sessions, Asia Commercial Bank (ACB) jumped 8.1 percent, SaiGon-Hanoi Bank (SHB) soared 7.8 percent, and Sacombank (STB) gained 10.7 percent.
Positivegains were also recorded in other large-cap stocks, such as dairy producerVinamilk (VNM), consumer goods producer Masan Group (MSN), PetroVietnam Gas Corp(GAS) and Faros Construction Corp (ROS).
However,there are slight concerns over a chance the stock market could decline onprofit-taking, which targets strongly-increased shares, and the re-allocationof investment among local assets.
“Investorscould seek for possible profits in penny stocks as the increase of those shareprices is not related to the improvement of those companies’ core businesses,”said Nguyen Huu Binh, head of analysis division at International VietnamSecurities Company.
Accordingto Viet Capital Securities Company, investors tended to switch their attentionsfrom mid-cap and small-cap stocks to blue chips and large-cap stocks, resultingin the decline of the VNMidcap Index.
Thebrokerage firm forecast that as small-cap and mid-cap stocks would suffer fromthe re-allocation of investment, there is a chance the stock market could falland test the short-term support range of 715-718 points.-VNA
On March24, the benchmark VN-Index on the HCM Stock Exchange edged up 0.4 percent toclose at 722.14 points, reaching a fresh ten-year high. The southern marketindex has gained a total of 1.3 percent in the last two days.
TheHNX-Index on the Hanoi Stock Exchange advanced 1.6 percent, the highest dailygrowth since January 3, to end at 91.37 points. The northern market index hasincreased by a total of 1.8 percent in the past two sessions.
March24’s gains also helped the VN and HNX Index finish up 1.6 percent and 3.4 percent,respectively, compared to the previous week’s closing levels.
Nearly272.3 million shares were traded in each session last week, worth 5.1 trillionVND (226.8 million USD). Daily average trading liquidity rose from the previousweek’s figures by 23.6 percent in trading volume and 13.5 percent in tradingvalue.
Accordingto securities analysts, positive foreign investor confidence in local stockswas the major factor that lifted the benchmark VN Index across the challenginglevel of 720 points.
Foreigninvestors last week recorded a net buy value of more than 1 trillion VND, 5.2times the previous trading week’s figure. On the HCM Stock Exchange, foreign investorshave a net buy value of 1.2 trillion VND so far in March.
“Foreigninvestors do not seem too concerned about the US Fed’s interest rate increasesas they were when the previous rate hikes were made,” said Tran Xuan Bach, ananalyst at Bao Viet Securities Company. “They have gotten used to those ratehikes. They have reacted and made moves in advance in order to prepare for theFed’s rate increases at the end of each quarter.”
“Therefore,if nothing happens unexpectedly, the next two rate hikes will not have negativeimpacts on foreign investment in Vietnam’s securities market.”
TheVN Index will also receive support from large-cap companies that are expectedto provide good earnings reports for the first quarter of 2017, according toNguyen Ngoc Lan, head of brokerage division at Agribank Securities Company.
Forexample, bank stocks trading liquidity increased strongly in the past week, Lansaid. “Normally, the trending of bank stocks will last long and have widespreadpositive impacts on the stock market, therefore, local stocks will maintainpositive growth in the short-term ahead,” he added.
Lastweek, bank stocks had impressive performances. Vietcombank (VCB) rose total 2.7percent after five sessions, Asia Commercial Bank (ACB) jumped 8.1 percent, SaiGon-Hanoi Bank (SHB) soared 7.8 percent, and Sacombank (STB) gained 10.7 percent.
Positivegains were also recorded in other large-cap stocks, such as dairy producerVinamilk (VNM), consumer goods producer Masan Group (MSN), PetroVietnam Gas Corp(GAS) and Faros Construction Corp (ROS).
However,there are slight concerns over a chance the stock market could decline onprofit-taking, which targets strongly-increased shares, and the re-allocationof investment among local assets.
“Investorscould seek for possible profits in penny stocks as the increase of those shareprices is not related to the improvement of those companies’ core businesses,”said Nguyen Huu Binh, head of analysis division at International VietnamSecurities Company.
Accordingto Viet Capital Securities Company, investors tended to switch their attentionsfrom mid-cap and small-cap stocks to blue chips and large-cap stocks, resultingin the decline of the VNMidcap Index.
Thebrokerage firm forecast that as small-cap and mid-cap stocks would suffer fromthe re-allocation of investment, there is a chance the stock market could falland test the short-term support range of 715-718 points.-VNA
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