Market uptrend predicted to continue
By Thanh Thuong - The Saigon Times Daily
HCMC – Experts expect the market to continue uptrend this week or even in the rest of the month given good news of a bailout package tentatively put forth by the Government. At the closing session last week, the markets staged strong rallies.
The VN-Index last Friday gained 7.52 points to 476.32 points, up 1.6% from last Thursday. Meanwhile, the HNX-Index surpassed the resistance mark of 80 points as it rose by 1.58 points to 81.27 points, up 1.98% on the preceding day.
The liquidity on the two bourses also strongly improved, with 108 million shares worth some VND1.7 trillion changing hands on the HCMC market, while the northern bourse also witnessed over VND1.063 trillion worth of 101 million shares traded.
In all, the VN-Index last week gained a mild 2.55 points, or 0.53% against the week earlier while the HNX-Index climbed by 1.41 points, or 1.76% compared to the week before.
In HCMC, there were 110 million shares changing hands each session on average, a surge of 23.1% from the previous week, while the figure was 94 million shares in the Hanoi market, or a rise of 48.6% over the preceding week.
The most important factor of the stock market is the stable cash flow, Phan Dung Khanh, head of the analysis department of Kim Eng Securities Co., told the Daily. Investors now pin high hopes on robust growth of the market this month as the trading value of each session on both markets has exceeded VND2 trillion since last month.
In addition, information on the lending rate cap and the financial package worth VND29 trillion from the Government are good news for the economy in general and the securities market in particular.
According to Vietnam Investment Securities Co., (VIS), there is high possibility that the cash flow will be maintained on the market due to poor profits at other channels like gold, foreign currencies and real estate trading. The capital may set new price levels.
Meanwhile, ACB Securities Co., (ACBS) noted the foreign exchange rate had continued the downtrend at a number of local lenders. The rate has tumbled to VND20,810 for buying and VND20,820 for selling per U.S. dollar from the high VND20.830-20,850 in late April.
The stability of the rate in the coming time will leave positive impacts on trading activities of foreign investors, ACBS noted.