Shares to move up amid return of cash flow
VNDirect said the shares will gain and VN-Index will maintain a slow uptrend this week and move towards the resistance zone of 1,080-1,100 points.
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| Novaland's office in An Phú Ward, District 2, HCM City. Novaland's shares rose 5.4 percent last week. (Photo: novaland.com.vn* |
Shares are forecast to gain this week thanks to cash flow returning into the market amid a positive business outlook of enterprises in the next quarters.
On the Ho Chi Minh Stock Exchange (HoSE), the VN-Index lost 0.11 per cent to close Friday at 1,069.71 points. The index had gained 0.48 per cent last week.
VNDirect Securities Co (VND) forecasts that individual investors' cash flow will gradually return to the stock market in the context of falling opportunity costs, loosening credit conditions and falling financial costs, helping to improve the business outlook of businesses in the coming quarters.
According to VNDirect, the State Bank of Vietnam continued to have an interest rate cut on March 31; exchange rate pressure cooling down helped the State Bank buy about 800 million USD of foreign exchange reserves last week. This information clearly shows the reversal trend of monetary policy.
VNDirect said the VN-Index will maintain a slow uptrend this week and move towards the resistance zone of 1,080-1,100 points.
"In the face of strong resistance, investors should maintain certain caution and limit purchasing at high prices. Investors should only consider buying stocks in correction sessions, prioritising industries with growth this year such as public investment, banking, steel, building materials and securities," VNDirect recommended.
Viet Dragon Securities Co. added: “Profit-taking pressure temporarily cooled down on Friday, creating an opportunity for demand to return and support the market at the end of the session. All indices retreated and closed around the reference level with a significant drop in liquidity.
"With this development, the market still has a chance to recover early next week to test the presence of supply pressure at the high price zone. It is expected that the area of 1,075-1,080 points of the VN-Index will continue to have conflicting movements.
“Therefore, investors can temporarily expect a recovery at the beginning of next week. However, investors should take advantage of this recovery of the market to take short-term profits or sell to minimise risks for the portfolio.”
Large-cap banking stocks suffered strong correction pressure last week, including Vietcombank (VCB) down 1.5 percent, Bank for Investment and Development of Vietnam (BID) down 1.2 percent and VPBank (VPB) down 0.7 percent. Meanwhile, banks with low capitalisation increased positively such as Techcombank (TCB) up 4.2 percent, Tien Phong Bank (TPB) up 4.1 percent and Saigon-Hanoi Bank (SHB) up 7.9 percent.
In the real estate industry, Vinhomes (VHM) and Vingroup (VIC) both fell while smaller-cap real estate stocks gained strongly such as Novaland (NVL) up 5.5 percent, Nam Long Group (NLG) up 9.3 percent, DIG Corp (DIG) increased by 25.9 percent.
In the context of improved liquidity, securities groups also had an impressive gain. These include BIDV Securities Jsc. (BSI) up 15.6 percent and SSI Securities Inc (SSI) is up 4.7 percent.
The HNX-Index on the Hanoi Stock Exchange (HNX) rose 0.08 per cent to close Friday at 211.60 points.
The index had risen 1.98 percent last week.
(Source: Vietnamnews)
