Việt Nam stocks are forecast to continue to prosper this week while liquidity will likely increase dramatically, with VN-Index surpassing the 2018 price peak, equivalent to 1,200-1,211 points.

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index ended last week at 1,225.98 points, a gain of 15.03 points, or 1.24 per cent.

The index had gained 1.52 per cent last week.

“Liquidity increased, showing that cash flow is trying to absorb supply after being cautious in the previous sessions. With the gain being maintained, despite the structuring activities of ETFs, cash flow may continue to be active at the beginning of this week and help the market return to the 1,230 to 1,235 point area,” said Việt Dragon Securities Co.

“Disputes and exploration of supply and demand may appear in this area. Therefore, investors need to observe the state of supply and demand at the resistance zone. Currently, it is still possible to hold or exploit short-term opportunities in stocks that are showing good signals from cash flow.”

“However, it is still necessary to consider the possibility of a recovery to take profits or reduce the weight in stocks that are at resistance areas or are showing distribution signals to minimise risks for the portfolio.”

The market received supportive information on Thursday last week when the Government held a conference to discuss and remove difficulties for the real estate market, said Đinh Quang Hinh, head of Macro and Market Strategy Division, VNDIRECT Securities Joint Stock Company (VNDIRECT).

“During this conference, a number of solutions were given, especially on the issue of removing legal obstacles for real estate projects,” he told Việt Nam News.

“After the conference, with the expectation that the Government and localities would step to support real estate businesses, the cash flow has poured into real estate stocks - the second largest market capitalisation group, thereby promoting the recovery of stock indexes,” he said.

Positive momentum may spread to the beginning of this week and the VN-INDEX may penetrate deep into the 1.235-point resistance area. In this area, the market may see strong fluctuation due to profit-taking by investors.

Therefore, investors should limit buying at high prices and carefully observe market movements around this resistance area to make appropriate decisions. If the VN-INDEX fails to break through the above resistance area and turns down, investors should consider lowering the margin ratio.

“If the market continues to break through the above resistance area, investors can continue to hold stocks to move towards higher milestones,” he said.

Cash flow may continue to be active at the beginning of this week and help the market return to the 1,230 to 1,235 point zone, said Việt Dragon Securities Co.

According to data from the Việt Nam Securities Depository (VSD), domestic investors opened 150,407 new securities accounts in July, an increase of nearly 5,000 new accounts compared to the previous month.

The number of new securities accounts opened in July was the highest in 11 months since last August. Thus, by the end of July, the total number of individual investor accounts in the country had exceeded 7.4 million accounts, equivalent to more than 7.4 per cent of the population.

Last week, real estate stocks continued to have the most outstanding performance, with many stocks attracting cash flow. Vingroup (VIC) increased by 20.78 per cent, and Novaland (NVL) increased by 7.90 per cent.

Banking stocks also had a very positive performance, with Asia Commercial Bank (ACB) up 9.91 per cent, Liên Việt Post Bank (LPB) up 5.83 per cent, Saigon-Hanoi Bank (SHB) up 5.56 per cent. — VNS