VN-Index predicted to keep struggling this week

The local stock market is expected to continue struggling this week, with the VN-Index of the Hochiminh Stock Exchange oscillating between a narrow range from 900 and 930 points amid sluggish turnover, stock brokers said.

According to BIDV Securities Company, the stock market was driven up by only a few blue chips during rising sessions last week, while a number of mid-cap stocks dipped and returned to their low price levels. Large-cap stocks were mixed with property developer VIC, budget carrier VJC, dairy producer VNM and consumer goods firm MSN among the gainers.

That shows the market needs some time to settle down and regain momentum at the current level to increase more strongly in the future, it said in a report.

The mixed performances by heavyweights suggested that an uptrend, if any, would be not stable. In the next few weeks, large-cap stocks will take turns to lift the market up and lure investors back to the market, the brokerage firm commented.

Bao Viet Securities Company, meanwhile, forecast a poor run for the market’s short-term prospects. Investors will increase their selling this week and focus to gain profits from mid-cap and small-cap stocks while large-cap stocks will continue performing in negative directions.

At the moment, there is not much positive news to lift the market, and therefore, the main index will settle at its current level for the next few weeks and will improve strongly in the longer term due to leading corporations’ last-quarter earnings.

Saigon-Hanoi Securities Company said poor investor confidence resulted in low turnover last week and therefore, the VN-Index would fall in this week.

The trading conditions reflected the hesitation of investors as they increased profit-taking actions, especially when the VN-Index retested its short-term supporting level of 900 points. This week, the VN-Index may trade sideways due to the lack of supporting information, so investors should be careful given current risky conditions in both domestic and international markets.

The VN-Index had its biggest drop in two weeks, closing down 1.29% last Friday. For the week, the index fell 0.9% for a fifth week of losses in the last six.

Gas trader GAS slumped to a three-month low as the price of Brent crude oil hit a seven-month low in Asian trading. Other energy names, such as PVD, PVS, PVT and PLX, were also hit by heavy selling.

Banks also weighed on the market, led by VCB, BID and MBB.

« Go Back