Local market outlook still positive

A steel pipe factory of Hoa Phat Group JSC. Hoa Phat was among the supporters of the stock market last week, rising 6.7 per cent. - VNA/VNS Photo Ngoc Ha

The benchmark VN-Index on the Ho Chi Minh Stock Exchange gained 0.56 per cent to close Friday at 924.00 points.

The index had gained 1.55 per cent last week.

An average of 466.9 million shares were traded on the southern exchange during each session last week, worth VND7.7 trillion (US$333 million).

“The market is slowly going up with support from domestic cash flow. Its gaining momentum will continue to aim at 950 points,” said MB Securities Co.

“The VN-Index is forecast to develop positively early next week. After penetrating through the resistance of 920 points, the market is expected to head towards 935-945 points in the short term,” said Bao Viet Securities Co.

However, the market’s upward momentum will experience alternative corrections and a wide divergence among stock sectors, it said.

“The market will possibly fluctuate significantly mid-week amid the maturity of October futures contracts. Besides, the market will fall under the influence of Q3 business results of listed companies,” the company said.

“The stock exposure should be maintained at 50 per cent of total investment. Blue-chip stocks will continue to increase to lead the market. Investors should find investment opportunities from mid- and small-cap stock sectors.

“Investors holding a large stock exposure may consider lowering short-term exposure at resistance around 935-945 points,” it said.

According to Rong Viet Securities Co, the VN-Index has successfully surpassed the resistance level of 920 after many testing sessions but the matching volume decreased significantly.

“The VN-Index is having a positive period in terms of points but the market still shows cautiousness and has not really attracted new cash flows. Therefore, investors should stay cautious with unexpected risks,” the company said.

Although the market continued to go up, foreign investors were net sellers in recent weeks. Last week, foreign investors net sold VND718 billion.

With the market increasing last week, most of the major stock sectors witnessed growth.

According to statistics from Saigon-Hanoi Securities Joint Stock Company (SHS), the group of raw materials was the strongest gainer with a 6 per cent increase. Notable gainers in the group were Hoa Phat Group (HPG), rising 6.7 per cent, Hoa Sen Group (HSG), climbing 1.6 per cent, Nam Kim Steel (NKG), up by 4.8 per cent, PetroVietnam Ca Mau Fertiliser Joint Stock Company (DCM), rising by 3.4 per cent and PetroVietnam Fertiliser and Chemicals Coporation (DPM), gaining by 0.9 per cent.

Consumer goods also gained ground with a 3.9 per cent increase. Typical gainers included Masan Group (MSN), rising by 25.9 per cent and Sabeco (SAB), going up by 4.6 per cent.

Other industries all saw a slight increase such as consumer services rising 1.4 per cent, finance 0.9 per cent, pharmaceutical and healthcare 0.9 per cent, information technology up 0.7 per cent and banking 0.2 per cent.

On the other side, the oil and gas group dropped by 0.7 per cent because the pillar stock Vietnam National Petroleum Group (PLX) dropped strongly by 1.7 per cent.

SHS said if the VN-Index surpasses the resistance level of 925 points this week, the index will head to the next resistance zone of around 940 points.