Shares to reach new heights on cash flow but risks abound

Workers at Dung Quat Oil Refinery in the central province of Quang Ngai, operated by Binh Son Refining and Petrochemical JSC (BSR). BSR rose 11.5 per cent last week. - Photo bsr.com.vn

Shares gained for six consecutive sessions on Friday. On the Ho Chi Minh Stock Exchange (HoSE), the VN-Index gained 0.72 per cent, to hit 1,374.05 points.

The southern market index had risen 4.06 per cent last week.

An average of 802.7 million shares were traded on the southern exchange during each session last week, worth VND26.8 trillion (US$1.7 million).

According to SSI Securities Incorporation (SSI), with the current movement, the VN-Index still has the momentum to continue going up towards the 1,400 point area thanks to strong cash flow.

“However, risk management needs to be focused in this period with support levels for VN-Index at 1,350 points and 1,300 points, respectively,” it said.

According to BOS Securities Joint Stock Company (BOS), VN-Index is approaching the resistance level of 1,380 points with a push from cash flow.

“Although technical indicators are still showing signs that the uptrend is maintained, the steep slope of the signal lines shows potential risks and corrections may still happen,” it said.

“VN-Index will challenge the resistance level of 1,380 points at the beginning of this week. Corrections may take place during the index conquering new peaks,” it said.

“VN-Index is forecast to face strong pressure at the resistance zone of 1,350-1,380 points,” said BIDV Securities Co.

“Market movements will continue to see strong differentiation among stocks in the current period,” it said.

“Capital flow is likely to shift to other groups such as real estate, oil and gas, because banking, securities and steel groups are showing signs of cooling down,” it said.

Investors should maintain the proportion of stocks in the portfolio to 50 per cent. Those with a high proportion of stocks in the portfolio should consider selling a part of short term positions.

On Ha Noi Stock Exchange (HNX), the HNX-Index declined 0.05 per cent to close Friday at 329.76 points.

The northern market index had risen 6.2 per cent last week.

An average of more than 206 million shares were traded on the HNX during each session last week, worth 4.8 trillion.

According to statistics from Saigon-Hanoi Securities Co (SHS), energy stocks increased the most last week, such as PetroVietnam Gas (GAS), up 11.5 per cent, PV Power (POW), rising 12 per cent, Petroleum Group (PLX), gaining 4.4 per cent, Binh Son Refinery (BSR), climbing 11.5 per cent, The PetroVietnam Drilling & Well Service Corporation (PVD), going up 17.4 per cent, Petrochemical and Bio-Fuel JSC (PVB) rising up 24 per cent, The Vietnam Oil and Gas Group (OIL), gaining 26 per cent and PetroVietnam Technical Services Corporation (PVS) gaining 26.4 per cent.

Banking stocks also performed well, such as Techcombank (TCB), up 3 per cent, Bank for Investment and Development of Vietnam (BID), rising 3.9 per cent, VPBank (VPB), up 4.5 per cent, Vietcombank (VCB) 5.3 per cent, Vietinbank (CTG) 5.5 per cent, Saigon Hanoi Bank (SHB) 7.6 per cent, Military Bank (MBB) 10.2 per cent and Asia Commercial Bank (ACB) 16.5 per cent.

According to Viet Nam Securities Depository Centre, the number of new accounts opened in May was 114,107, the highest in the market history. This is the third consecutive month that the number of new accounts has reached above 100,000.

Out of 114,107 new accounts, most of them are newly opened accounts of domestic individual investors, up to 113,543 new accounts.

The number of new accounts opened by foreign individual investors also increased sharply, reaching 423 accounts.

The number of new accounts of both domestic and foreign institutions also increased in the past month. Specifically, domestic organisations opened 131 new accounts and foreign organisations opened 10 new accounts, nearly equal to the number of 14,145 new accounts opened in the previous month.

The number of new accounts opened in May remained high, showing the excitement of the domestic stock market.

The average liquidity on HOSE in May reached VND22 trillion, up 19.3 per cent from the previous month.