Stock rallies extend for 5th day

22-Aug-2019 Intellasia | The Saigon Times | 6:02 AM Print This Post

Domestic stocks extended their winning streak for the fifth straight session today, August 20, but the rise momentum eased due to investor concerns over global market uncertainties.

The benchmark VN Index of the Hochiminh Stock Exchange added 3.64 points, or 0.37 percent, against the previous day at 984.67. Trade expanded 13 percent in volume to 178 million shares but value declined a mild 2 percent at VND4.1 trillion.

Notably, foreign investors became net sellers again after posting a strong net buying value on Monday. They net sold VND76.6 billion of shares on the HCM City market, chiefly those of low-cost carrier VJC and steel maker HPG.

A Bao Viet Securities Company report said the VN Index is forecast to fluctuate from 982 to 986 points in the upper range and from 970 to 975 points in the lower range in several sessions.

From a technical perspective, the market may face volatility and correction pressure before rebounding, especially after a long period of rising. If it breaks through the resistance level of 986 points, the market’s short-term outlook will improve and the main index will head toward the strong resistance zone between 1,000 to 1,005 points.

Sectors with strong decreases in previous sessions, including industrial zone and real estate, textile, and seaport have shown signs of recovery. Bank and oil and gas stocks are also expected to see some slight gains in the coming days.

VNDirect Securities Company, meanwhile, said the local stock market is still vulnerable to the unpredictability of global geopolitical and economic conditions.

The securities firm noted that bank shares are at one-year lows as worries about a slowdown of the economy and the financial sector have sent those stocks’ prices much lower.

The downtrend of the financial sector might be short-lived given its positive long-term prospects. The sector’s future growth will boost capital inflow as long-term investors will see stock price drops as an opportunity for buying more shares, it said.

The Hanoi Stock Exchange performed well, with the HNX-Index adding 0.38 percent at 102.98. Trading also improved as volume and value expanded 15 percent and 22 percent against the previous day at 32.3 million shares worth VND377 billion.

Foreign investors net sold VND14 billion of shares on the Hanoi market, soaring by 156.8 percent compared to Monday. They net sold VND6.4 billion of shares of petroleum technical service firm PVS and VND2.4 billion of lender ACB.


Category: Stocks, Vietnam

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