VN-Index seen moving sideways next week

Securities enterprises expected the local stock market to continue moving sideways next week as investors would remain cautious due to extended foreign net selling.

According to vietstock.vn, foreign investors were net sellers in all of the five trading sessions this week with a combined value of VND218 billion.

They reported a total net sell value of combined VND78.8 billion on Friday, of which VND70 billion worth of shares were offloaded on the Hochiminh Stock Exchange. This was the 14th net selling session of the foreign sector on the southern market for a total value of nearly VND1.5 trillion.

In September, the benchmark VN-Index struggled between 990 points and 1,000 points amid strong foreign selling.

Data of the Vietnam Securities Depository (VDS) showed that the number of new foreign accounts was just 275 last month, the lowest in seven months. The figure was down from 363 recorded in August.

The number of new domestic accounts also fell from 17,742 in August to 16,241 in September. In September, 16,590 new trading accounts were opened at the VSD, raising the total number to near 2.34 million.

According to Viet Dragon Securities Company, Vietnamese stocks are moving sideways in a narrow range, thus it is unlikely to get into the upside.

Sentiment may improve a little bit after the United States and China have reached what is called a substantial “phase one” deal, in which Beijing agreed to limited measures to improve trade ties between the countries and President Donald Trump will not move forward with another round of tariff increases against roughly US$250 billion in Chinese goods. However, the local stock market would continue fluctuating in a narrow range in the near term if foreigners continue net selling shares.

“We don’t see any leading sectors now. Therefore, investors need to be patient and observe the market in order to make appropriate decisions,” it said.

Bao Viet Securities Company said the market will see a wide divergence among stock sectors, depending on third-quarter earnings results.

“We forecast that banks, retail sales, real estate, electricity, natural rubber and tire rubber will achieve positive profit in the third quarter. The VN-Index would likely fluctuate between 980 and 1,004 points,” it said in a report.

On Friday, the VN-Index of the Hochiminh Stock Exchange increased 0.45% to close the week at 991.84. The index advanced around 0.4% during the week, which was its fourth positive week out of five.

On the Hanoi Stock Exchange, the HNX-Index inched up 0.1% to end at 105.26. It increased just marginally compared to the end of last week.

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