Market volatility expected next week

14-May-2019 Intellasia | The Saigon Times | 6:00 AM Print This Post

Stocks are predicted to turn volatile early next week as an escalation of US-China trade tensions will continue impacting domestic equities, said Tran Xuan Bach at the macro and market research department of Bao Viet Securities Company.

VN30 blue chips’ movements are seen unpredictable, Bach said. In a positive scenario, the VN Index of the Hochiminh Stock Exchange might move in the range of 940-950 points next week.

He advised investors to take advantage of rising sessions to lower their stock holdings.

Meanwhile, Dau Tu Chung Khoan cited analysts as saying that next week the index would edge up, backed by large-cap stocks such as FPT, GAS, PVS, MSN, VCB and VIC.

MB Securities JSC said in a report that positive signs seen in last Friday’s trading session will send the index increasing slightly. However, just one winning session could not reverse the gloomy trend of the market.

The VN Index closed up last Friday after six straight falling sessions. With 181 gainers and 102 losers, the index added 5.54 points, or 0.58%, against the session earlier to 952.55, helped by dairy giant VNM, lender BID, brewery SAB and gas firm GAS. Construction firm ROS led the southern market by liquidity with 10.22 million shares changing hands.

However, liquidity remained low because of market uncertainties after the US hiked tariffs to 25 percent for $200 billion of goods from China.

On the Hanoi Stock Exchange, the HNX-Index picked up 0.57 percent at 105.86 points. Trade on the northern exchange totalled 23.56 million shares worth VND290.4 billion, up 15.7 percent from the previous session.

Foreign investors net sold VND219.94 billion of shares on the southern bourse, chiefly VHM, HPX and HPG, while they net bought VND10.95 billion of shares on the northern exchange.

Given the gains on the two bourses, Phu Hung Securities Corporation said that the market is showing signs of improvement in the next few days. However, downside risks remain high due to global market uncertainties.


Category: Stocks, Vietnam

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