Stock market volatility forecast next week

The local stock market is predicted to seesaw in the range of 980 and 1005 points next week, Tran Xuan Bach at the macro and market research department of Bao Viet Securities Company said in a report.

He projected that VN-Index may possibly face profit-taking pressure at the resistance zone of 1000-1005 points, especially when foreign investors have recently net sold shares.

In a positive scenario, the market is expected to soon break this resistance zone to test the next level of 1016-1020 points in the short term.

Large-cap stocks may improve and support the market next week. Cashflow is forecast to focus on real estate, information technology and industrial parks.

With the market’s wide divergence, Bach advised investors not to buy at high price and to only buy at market’s corrections, focusing on basic and large-cap stocks.

Meanwhile, KB Securities Company said in its report that enterprises’ announcement of business results in the second quarter has brought significant positive impacts on the market. The positive results in banking and Vingroup stocks helped related stocks grow strongly in price.

However, the effects of the announcement of business results are also waning, along with the correction of VN-Index last week. In addition, movements on the global market are becoming more unfavorable, including the Federal Reserve System’s plan not to reduce interest rates as much as expected and the United States’ threat to tax another US$300 billion worth of Chinese goods.

Therefore, the benchmark index will not likely to increase strongly next week, according to KB Securities.

Last week, the VN-Index went down 2.26 points to 991.1 points. It saw three increasing sessions and two falling ones.

The biggest losers last week included national flag carrier HVN, gas firm GAS and lender CTG, while best performers on the southern bourse were housing developer VHM, lender VCB and real estate firm NVL.

Meanwhile, the HNX-Index settled at 103.7 points, down 2.7 points over the previous week.

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