Brokers predict seesaw trading this week
By Phuong Thao - The Saigon Times Daily
HCMC – Securities firms have forecast the local market may see seesaw trading and that after a recent seven-day winning streak, the VN-Index could test a sensitive range between 460 and 465 points again.
The markets edged lower after a strong week as profit taking dominated trading last Friday with lots of sell orders finding no buyers on both exchanges. The number of unmatched sell orders on the southern bourse amounted to nearly 15 million and over 26 million on the northern bourse.
The VN-Index closed at 462.5, jumping by 15.08 points, or 3.37%, against the previous week while the HNX-Index added 3.69 points, or 4.94%, to end the week at 78.4.
During the week, investors positively responded to the central bank’s surprise policy rate cuts and bright consumer price index expectations for April. Meanwhile, real estate stocks got a major boost from Document No. 2056 which provides much-needed backing to the real estate sector. Nearly all major real estate stocks like BCI, DIG, HAG, ITC, LCG, NTL, TDH and VIC made their way to the ceiling prices in the last three sessions.
However, Viet Dragon Securities (VDS) said that selling pressure piled up on both exchanges last Friday while buyers turned cautious again. This week, there will be clear divisions in capital flow as listed firms will start announcing first-quarter earnings reports. Therefore, investors will be able to recognize followers of the recent strong rally and only eye on those with good business performance.
Especially, the real estate sector will see the sharpest division and some stocks in the recent rising wave would have to drop back. As the market might fail to turn up buyers’ sentiment like last week, the VN-Index might fluctuate around its recent peaks, VDS added.
Viet Capital Securities Co. noticed that Thanh Thanh Cong Company just registered to sell 22 million shares of Sacombank (STB), which could continue to put pressure on STB’s price in the next few sessions, especially following last week’s announcement of over 58 million shares to be unloaded by Societe De Bourbon Tay Ninh Company, Sacomreal and individual investor Chang Hen Jui.
HCMC Securities Corp., meanwhile, noted that real estate stocks continued to climb while the rest of the market took a breather last Friday. Turnover remained high and foreign participation rates rose sharply as they became active net buyers.
“Market sentiment remains positive and we seem poised for further gains next week,” it commented.