Phuong Thao
Both markets recovered strongly in the first week of October with the VN-Index jumping 2.23% to close at 497.5 while the HNX-Index rose 0.89% to 60.94. Average matching volume on the southern bourse surged 36% against the previous week to around 71.7 million shares each session while that of the northern exchange increased 21% to 29.5 million shares.
Foreigner’s activity moved to the positive trend as they increased net buying value to VND283 billion on both exchanges, up by 2.6 times compared to that in the week earlier.
Last week, September Purchasing Managers’ Index (PMI) bolstered investors’ confidence about the manufacturing prospect during the final months of the year and increased investors’ optimism towards securities investment. Sentiment faced just a little bit of turbulence following the temporary shutdown of the U.S. government, making large-cap stocks correct slightly in the middle of week.
However, the market recovered quite well after the correction and heavyweights played a vital role in pushing the VN-Index up last Friday. Matching volume decreased slightly but value increased due to heavy trade in large-cap stocks, especially GAS.
Viet Dragon Securities Company noticed that the supply was not large while the demand was quite positive last Friday.
“We also saw that the speculative cash flow – motivation of the current short-run bullish wave – showed signs of abating as investors started to take profits. Meanwhile, at large-cap stocks, the cash flow tends to be selective and focus on stocks with earnings in the third quarter,” it said.
“In the next few weeks, we think that the divergence of cash flow will be stronger when the VN-Index moves towards 500 points. Investors should realize a part of profits when the index moves to the previous peak, at around 500-510 points, and continue disbursing into stocks with good business prospects in the third quarter,” the broker added.
Maybank Kim Eng Securities Company said that the VN-Index still advanced last Friday while global markets declined given public debt concerns in the U.S. Domestic information, especially bad debt transaction between Vietnam Asset Management Company (VAMC) and banks, would cheer up the market in short term.
The VN-Index may continue its uptrend after reaching new high last Friday. Investors are advised to keep high stock ratio in their portfolio to get higher profits, it said.
Đăng ký: VietNam News
