Seesaw stock moves forecast for this week

Securities firms predicted that the local market would experience seesaw trading this week as there is little positive news from the macro economy in the coming time.

According to Bao Viet Securities Company, 996-971 points would be the supporting range for the VN-Index of the Hochiminh Stock Exchange. If failing to sustain this range, the market will likely plunge to the new resistance level of 949-955 points in a little while. The upside is that foreign investors have been on the buying side amid the oversold condition of many stock groups.

“We expected the market to soon rebound from the supporting zone from 966 to 971 points this week. However, the downward momentum still remains strong while there is not much positive news to lift the market in early December. In case of a recovery, the benchmark index needs to enter a consolidation phase in the range of 970-985 points before sending clearer signals of rally,” Bao Viet said in its latest report.

Investors holding a large portion of stocks in their portfolios should consider selling part of their shares during rallies.

Analysts of BIDV Securities Company (BSC) forecast that the zone between 965 and 970 points will play a supporting role for the VN-Index. However, BSC advised investors to keep a cautious eye on the market in the next sessions due to the lack of supporting news.

Viet Dragon Securities Company (VDSC) in a report said that the market may undergo some technical rebound this week, but noted that potential risks should be taken into account.

Cautious sentiment is necessary and investors were recommended to take advantage of technical rallies to restructure their portfolios, said VDSC.

Last Friday, the main index on the HCMC market added a slight 0.36 point, or 0.04%, against the previous session to 970.75 at the close. The market breadth turned positive as 170 stocks advanced while 139 others declined. Trade volume and value tumbled 12% with over 167 million shares worth over VND3.7 trillion traded.

Meanwhile, stocks on the Hanoi bourse were on a wild ride, but at the end of the session, the HNX-Index managed to stay just above the reference level. It gained 0.16% and closed at 102.5 points, with winners outnumbering losers by 59 to 39.

More than 18 million shares worth some VND208 billion changed hands on the northern market. Shares transacted in block deals contributed over VND56 billion to the total value.

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