Varying forecasts for stock market, plenty of opportunities for investors

Workers of PetroVietnam Gas JSC (GAS). GAS dropped 3.8 per cent last week. - VNA/VNS Photo

The benchmark VN-Index on the Ho Chi Minh Stock Exchange edged up 0.02 per cent to close Friday at 888.97 points.

The southern market index declined a total of 1.39 per cent last week.

An average of 348.7 million shares were traded on the southern exchange each session last week, worth VND7.3 trillion (US$314.7 million).

According to Mirae Asset Vietnam Securities Co, the VN-Index was in a correcting process after testing the resistance zone of 900 points last week. The index was showing signs of balancing at 883-885 points and the next technical support level is expected to be 875-880 points.

The company said cash flow is set to flow into stocks with positive six-month business results.

MB Securities JSC said the market was in an accumulation stage and price fluctuations are being narrowed with trading volume decreasing.

“Therefore, the domestic market would have a chance to recover in the coming sessions," the company said.

“Technically, the VN-Index is facing the resistance zone of 900 points, groups of stocks of energy and food and beverage will attract the cash flow,” it added.

According to Tran Xuan Bach, a stock analyst at Bao Viet Securities Co, the VN-Index will fluctuate between 880-885 points and 895-905 points for several sessions.

“Overall, we maintain our positive outlook on market movements in the short term,” Bach said.

“Market corrections are necessary for several stock sectors to cool down and accumulate for their impulsiveness and could possibly offer opportunities for investors to participate in the market at a reasonable price. Stock sectors with macroeconomic benefits are expected to attract investors once revisiting fair prices.

“The maturity of September futures contracts will take place on Thursday while VanEck and FTSE will have their Q3 portfolio review next week,” Bach said.

He said the stock exposure should be maintained at 50 per cent of total investment.

“Investors who already sold previously may consider reopening buying positions at support 880-885 points. Investors with high stock exposure should consider lowering short-term stock exposure at resistance 900-905 points,” he said.

Saigon-Hanoi Securities JSC (SHS) said the VN-Index had fallen after five consecutive gaining weeks with increasing liquidity, which indicated selling pressure during the week was relatively strong.

It forecast that this week the VN-Index would continue to decline with the nearest support zone about 875 points.

With the market falling again last week, most major stock sectors also dropped.

According to SHS statistics, oil and gas stocks fell the most with notable losers of Vietnam National Petroleum Group (PLX) decreasing 3.7 per cent, PetroVietnam Oil Corporation (OIL) falling 2.5 per cent, PetroVietnam Drilling & Well Services Corporation (PVD) down 2.7 per cent, PetroVietnam Technical Services Corporation (PVS) falling 2.4 per cent, PetroVietnam Gas JSC (GAS) dropping 3.8 per cent and PV Power (POW) declining 3.8 per cent.

Banking stock also performed poorly with Vietcombank (VCB) falling 3.1 per cent, Vietinbank (CTG) down 1.5 per cent, Bank for Investment and Development of Vietnam (BID) losing 3.9 per cent, VPBank (VPB) declining 2.6 per cent, Military Bank (MBB) decreasing 1.1 per cent, Techcombank (TCB) losing 2.5 per cent and Asia Commercial Bank (ACB) falling 1.4 per cent.

Stocks in the “Vin” family also fell sharply. Vingroup (VIC) decreased by 3.1 per cent and Vinhomes (VHM) lost 2.9 per cent.

On the other side, stocks in the fertiliser sector gained ground, such as Petrovietnam Fertilizer & Chemicals Corporation (DPM) increasing by 4.9 per cent, Bình Điền Fertilizer Joint Stock Company (BFC) rising by 10.7 per cent, and PetroVietnam Cà Mau Fertiliser JSC (DCM) increasing by 2.5 per cent.

In the seaport industry, Gemadept Corporation (GMD) rose 5.4 per cent and Vietnam Container Shipping Joint Stock Corporation (VSC) increased 0.9 per cent.

Real estate stocks such as Phat Dat Real Estate Development Joint Stock Company (PDR) increased 19.2 per cent, Ba Ria - Vung Tau House Development JSC (HDC) rose 5.9 per cent and Nam Long Investment Corporation (NLG) climbed 1.4 per cent.

According to the Vietnam Securities Depository (VSD), in the first 11 days of September, VSD issued 107 new trading accounts to foreign investors, of which there were 74 individual investors and 12 organisations.

Earlier in August, VSD issued 296 new trading accounts to foreign investors.

The recent increase in the number of foreign trading accounts has been a positive signal amid the COVID-19 pandemic, which has caused the number of foreign investors entering Vietnam to plummet.