VN-Index seen testing 1,000-point level again

Securities firms expect the VN-Index of the HCMC bourse to test the psychological level of 1,000 points again next week.

The benchmark VN-Index could hover in a narrow range of 998 and 1,005 points, they said.

Having failed to beat the threshold for several times, the index may be able to stay firmly above the level for a while as macroeconomic factors are keeping the market buoyant. Notably, the nation’s gross domestic product (GDP) expanded 6.98% in the January-September period this year.

However, the market may come under selling pressure again within the range of 1,000 and 1,005 points. If passing through this range, the VN-Index would enter into an upward trend for the medium term, said Bao Viet Securities Company.

Military Bank Securities Company said in a report that the third-quarter earnings season would start this week and company earnings reports are expected to boost the market’s overall performance. Another short-term upside is the possibility of the United States and China reaching a trade deal.

The short-term market uptrend is likely to continue as institutional investors returned last week, helping the VN-Index rise for a third straight week, the report said.

Last Friday, the VN-Index on the Hochiminh Stock Exchange gained 0.72% to close at 997.84. With three rising and two falling sessions, the index added 0.75% in all of last week.

According to securities companies, investor sentiment improved significantly but just financial stocks benefited. Investors are expecting financial firms to record strong earnings growth in the last quarter of the year.

Among lenders, VCB hit a new record high as it picked up 2.3% to VND82,900. Brokerages with the strongest gains were SSI, BSI and VND.

FTSE last Friday maintained its classification of Vietnam as a frontier market but kept Vietnam on its watch list for possible reclassification as a "secondary emerging market" within the FTSE Country Classification scheme at its next annual review in September 2020.

According to FTSE, Vietnam continues to fail the “Clearing & Settlement: T+2/T+3” criterion, which is currently rated as ‘restricted’, due to the Vietnamese market practice of conducting a pre-trading check to ensure the availability of funds prior to trade execution.

On the Hanoi Stock Exchange, the HNX-Index ended at 104.77 points, unchanged from the previous session. The northern market index gained a total 0.6% last week.

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