Shares to accumulate before new earning results season

Flight attendants of low-cost airline Vietjet (VJC). VJC was up 3.4 per cent last week. Photo courtesy of Vietjet

On the Ho Chi Minh Stock Exchange, the VN-Index increased 0.1 per cent to close Friday at 1,345.31 points.

The index had risen 0.8 per cent over the last week.

An average of 736 million shares was traded on the southern exchange during each session last week, worth VND22.7 trillion (US$996.3 million).

According to MB Securities Joint Stock Company (MBS), the easing of social distancing measures from September 15 will help stocks in the airlines, retail and export industries rebound strongly.

According to statistics of Saigon Hanoi Securities Joint Stock Company (SHS), last week the consumer service group increased the most thanks to the contribution of stocks in the aviation industry such as Vietnam Airlines JSC (HVN) up 19.6 per cent, Airports Corporation Of VietNam (ACV) rising 7.7 per cent, Vietjet (VJC) up 3.4 per cent, SCSC Cargo Service Corporation (SCS) up 2 per cent, retail stocks such as Digiworld Group (DWG), increasing 19.6 per cent, Mobile World Group (MWG) up 7.9 per cent.

They were followed by stocks in the steel industry such as Hoa Phat Group (HPG), up 4.7 per cent, Nam Kim Group (NKG), up 4.9 per cent and Hoa Sen Group (HSG), up 12.1 per cent.

The information technology group also made gains with notable gainers of FPT Corporation (FPT), up 1.2 per cent, and CMC Group (CMG), increasing by 3.6 per cent.

The banking group increased with gainers Vietinbank (CTG), up 0.8 per cent, Asia Commercial Bank (ACB), up 0.9 per cent, Military Bank (MBB), up 1.1 per cent, Bank for Investment and Development (BID), up 1.7 per cent, Techcombank (TCB), up 2.1 per cent and Vpbank (VPB), up 5 per cent.

SHS said VN-Index was in a struggling price range of 1,330-1,350 points and the trend can only change if it can break out of this zone.

SHS forecast two scenarios for the market trend this week. In the negative scenario, VN-Index may correct again if it cannot overcome the nearest psychological resistance of around 1,350 points. In a positive scenario, if VN-Index surpasses the psychological threshold of 1,350 points, the index may head to the zone of 1,375-1,380 points.

According to Vietnam Foreign Trade Bank Securities Company Limited (VCBS), it is likely that the market will continue to witness a few more weeks of accumulation before the launching of the third-quarter business results season of 2021.

VCBS said that investors could consider gradually accumulating stocks with good prospects for business results in the third and fourth quarters of this year, and observe more to wait for a new price level then look for disbursement opportunities in the next period.

According to news site tinnhanhchungkhoan.vn, VN-Index was in the strong support level of 1,330 - 1,335 points, ready to return to the recovering trend to the old peak resistance of 1,375.

“Never before have we seen so many M&A deals and business acquisitions as this time. Stocks such as Nam MeKong Group JSC (VC3), Vina2 Invest And Construction Joint Stock Company No2 (VC2), BGI Group JSC (VC7), Louis Land JSC (BII), APG Securities JSC (APG), Louis Capital JSC (TGG) have all been restructured,” it said.

“Acquisitions and ownership ratio increasing have led to an improvement in corporate quality and efficiency in the production of business, which will be what every shareholder always looks forward to,” the site said.

"Investors can still choose to find different promising stocks to build a complete portfolio," it said.

In the short termight return to the area of 1,360 - 1,380 points.

“Supporting information for the market is probably the easing of social distancing, the review of the ETFS portfolio taking place in the last two weeks of September and some stock groups have started to accumulate quite actively, such as financial services and insurance stocks,” it said.