Phuong Thao
Both markets maintained sideways movements in the last week of November. The VN-Index closed the week up a slight 0.42% at 507.78 while the HNX-Index closed at 65.19, a 0.93% rise compared to the previous week.
Liquidity decreased sharply on HCMC and Hanoi exchanges with trading volume averaging out at 127.8 million shares per day, down 25% versus the previous week. Foreigners increased their trading with a net buying value of around VND158 billion on both bourses, double that of the week earlier.
BIDV Securities Company said profit taking on penny stocks was increasing significantly and capital was running into stocks that had not increased sharply previously.
From December 9-20, ETFs will review portfolios for the last quarter. According to recent data, the ETF VNM has plans to withdraw around VND150 billion from the Vietnam stock market, putting great pressure on the market.
“Without supporting information, the market will continue moving sideways next week and profit taking pressure is forecast to increase before ETFs rebalance their portfolios. Therefore, we keep our view that investors should buy stocks having good fundamentals and having declined strongly recently,” the broker said.
According to Viet Dragon Securities Company (VDSC), as the VN-Index has fluctuated in a narrow range in recent days, it is difficult to predict the trend in the coming time. In addition, macro-economic figures of the last quarter are expected to see modest changes.
“However, from a technical viewpoint, the market still sees an uptrend and the VN-Index may increase further if it breaks out of the current sideways movement range. We think the market may remain this flat in the near future and next Monday’s session will decide how the market performs in the whole week,” VDSC predicted.
“Next month, ETFs rebalancing could keep liquidity high on both markets. In our opinion, ETFs trading would only cause impacts on blue-chips in short term. However, in December, new factors like the announcement of foreign ownership limit expansion, Trans-Pacific Partnership (TPP) and profit prospects of listed firms in the last quarter of this year will show up. We hope that those factors could play an important role in orienting cash flows in the last month of 2013.”
Đăng ký: VietNam News