Stocks seen rallying next week

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

The stock market is expected to rally and hover around the resistance range of 980 and 983 points early next week before it might become volatile toward the weekend, according to Bao Viet Securities.

The firm said the VN Index of the Hochiminh Stock Exchange should pass this range and move toward a stronger resistance range of 993 and 1000 points if the growth momentum is to be maintained.

However, the stock brokerage forecast that if the index does not reach 980-983 points early enough, supply might come under pressure, and shares would decline in the short run.

“As the market has not been able to beat the 980-to-983-point range, we leave open the possibility that the market’s recent gains were only technical. Stock exposure, therefore, should be limited at 35 percent-45 percent of the portfolios,” said the firm.

The company suggested that investors could partly sell the shares that strongly gained in the recent winning sessions.

As the market is diverged wildly among groups of stocks, according to the firm, investors should consider carefully before buying.

The VN Index made gains for the fifth straight session on Friday, helped by strong rises of oil and gas stocks. The index inched up 0.08 percent to end at 976.48 points.

Brewer SAB picked up 4.9 percent to its highest price in nearly five months. Construction firm ROS also made a swift recovery with a rise of 6.6 percent to close at VND34,8000 per share, and took the lead by liquidity with more than 12.6 shares traded.

Most banks were down since VPB, TCB, HDB, EIB and BID declined 0.3 percent to 1.4 percent while their fellows CTG and TPB made respective gains of 0.5 percent and 2.1 percent.

More than 135 million shares worth over VND3.1 trillion were traded on the southern bourse, down 20.6 percent and 17.6 percent respectively over the previous session.

On the Hanoi Stock Exchange, the HNX-Index inched down 0.28 percent at 105.79 points. Around 33 million shares worth VND369 billion were traded on the northern bourse, up 8.3 percent in volume but down 14.1 percent in value.

Among the top 10 stocks by market capitalisation, petroleum technical service firm PVS and port operator PHP gained 1.2 percent and 0.9 percent to close at VND24,400 and VND11,000 per share, respectively, and infrastructure developer DL1 remained unchanged. The others were in negative territory.


Category: Stocks, Vietnam

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