Market indexes and liquidity suffer a sudden fall in the final trading session last week. (Photo: VNA)Hanoi (VNS/VNA)- Market indexes and liquidity suffered a sudden fall in the final tradingsession last week, meaning that negative signals started to appear following aperiod of recovery.
Vietnam’s benchmark VN-Index on the Ho Chi Minh Stock Exchange dropped 0.70 percentto close at 917.97 points on November 23, increasing 1.2 percent on a weeklybasis.
The HNX Index on the Hanoi Stock Exchange lost 0.27 percent to end onNovember 23 at 104.27 points. It rose a total 1.2 percent last week.
185 million shares were traded on average on the two local exchanges in eachsession, worth 4.2 trillion VND (182 million USD).
The market rebounded well early last week with blue-chips gaining ground,taking turns to help prevent the market indices from falling during the week.
However, when the VN-Index reached the high price range, selling pressureappeared and increased, causing the market to drop on November 23 with verypoor liquidity. Buying demand was weak and massive selling caused the VN-Indexto plunge.
Although foreign investors were net buying again in the last trading session ofthe week, reducing the risks for the coming week, investors should be prudentand carefully observe market movements.
Last week, the VN-Index was supported strongly by the recovery of Vingroup(VIC), Vinhomes (VHM) and Vincom Retail (VRE). Food and beverage groups such asVinamilk (VNM) and Masan Group (MSN) also contributed significantly to theuptrend of the VN-Index. The banking sector also showed positive signs of recovery.The rise of the banking group last week was mainly down to TPBank (TPB) andVPBank (VPB).
Oil stocks such as Petro Vietnam Gas JSC (GAS), PetroVietnam Technical ServicesCorporation (PVS), PetroVietnam Drilling & Well Services Corporation (PVD)and Petro Vietnam Coating JSC (PVB) fell sharply in line with the negativemovements of world oil prices.
World oil prices are plummeting, with both Brent and WTI at their lowest levelssince early 2018.
Brent crude oil futures fell 80 cents on November 23 to 61.89 USD a barrel, havinghit a session low of 61.52 USD, while US West Texas Intermediate (WTI) crudefutures lost 1.04 USD to trade at 53.23 USD a barrel.
Nguyen The Minh, head of analysis at Yuanta Securities Vietnam Co. toldtinnhanhchungkhoan.vn that at present, the world stock market was still in adowntrend, putting negative impact on the movements of the Vietnamese stockmarket.
“However, positive information from business results of listed companies isexpected to boost investors’ confidence. Therefore, I expect a more positivescenario for the indices,” he said.
According to Bao Viet Securities Company (BVSC), next week, the VN-Index willkeep rallying and move towards the 930-940 resistance zone.
“In the best-case scenario, if the index surpasses this resistance zone, themarket is expected to move towards the next resistance at 955-965 points,” BVSCsaid.
“However, the market may still experience a drop early next week. The index isforecast to fall to the 909-913 support zone. It is then expected to bounceback from this threshold.” – VNS/VNA
VNA
