Home / Economy / Banking & Finance
Vn-Index set to go sideways this week
Hai Yen 16:00, 2021/10/04
For trading sessions from October 4-8, the Vn-Index may continue to fluctuate in the range of 1,320-1,360.

The benchmark Vn-Index is set to go sideways this week as uncertainties on the pandemic still looming over the economy and public firms are expected to release their respective business results in the third quarter.

 Investor at a securities company in Hanoi. Photo: Cong Hung

The Vn-Index closed the final trading session on October 1 at 1,3349.89, down 1.2% against the previous week.

Meanwhile, market liquidity sharply declined by 18% to VND16.36 trillion ($719 million) on the Ho Chi Minh City Stock Exchange (HoSE), which demonstrated the cautious sentiment of investors ahead of the release of quarterly earnings reports of publicly traded firms.

MB Securities Company (MBS) suggested the low liquidity in the past week was a result of the grim domestic and global economic situation, but “there is anticipation that the  accumulating period is coming to an end.”

For the next two weeks, MBS expected trends would vary sharply among different groups of stocks when the earning reports are out. In this context, stocks from firms in fields reporting high growth from the beginning of 2021, including steel, construction materials, securities, chemicals, or logistics, should continue to enjoy strong growth.

“Investors are waiting for firms that show strong resilience against the current economic hardship,” stated the MBS, adding the liquidity could return to stocks from banks, construction, or petroleum.

“For trading sessions from October 4-8, the Vn-Index may continue to fluctuate in the range of 1,320-1,360,” it added.

Sharing the view, Vietcombank Securities (VCBS) said it is inevitable that the local stock market was impacted by uncertainties in the regional financial market.

This, however, would not affect the mid-and long-term prospects of Vietnam’s stock market, as the economy would soon return to the growth track in line with the Government’s efforts in gradually lifting restriction measures.

“Stocks from firms with high potential for growth in the remaining period of 2021 and subsequent years are the one to go for,” stated the VCBS, but advised investors to refrain from using financial leverage to avoid risks in case of market fluctuation.

Yuanta Securities Company expected the market would show a clearer trend in the upcoming sessions. “A positive note is a stark differentiation in liquidity between stocks, which shows investors are still committed to the market and only making adjustments to their purchasing strategies,” said Yuanta.

BIDV Securities Company (BSC) said this week’s trading sessions would see the market hovering around 1,320-1,330, due to the contraction of 6.17% in GDP growth in the third quarter and serious Covid-19 fourth outbreak.

But as the number of infection cases is on the decline along with a positive economic outlook in the fourth quarter, the stock market could see a strong end this year, stated the BSC.

RELATED NEWS
TAG: VN-Index stock market HOSE recovery GDP
Other news
16:46, 2021/46/29
Hanoi Stock Exchange considers launching single stock derivatives
The move is aimed at diversifying products on offer and boosting market liquidity.
09:26, 2021/26/27
C.bank expands credit quota for banks to meet growing credit demands
Many banks have reached their respective credit limits in the first nine months of 2021.
19:35, 2021/35/26
Vietnam bond market expands to over US$83 billion: ADB
On an annual basis, the bond market expanded 23.5% year-on-year in the third quarter, slowing from 27.5% year-on-year growth in the second one.
13:09, 2021/09/24
Banks forego over US$684 million for customers
Banks’ profits are expected to decline by a total of VND20.6 trillion (US$908.3 million) until late 2021 due to business support schemes during the pandemic.
16:06, 2021/06/23
Central Bank injects $2.63 billion into forex reserves
This resulted in trillions of dong being pumped into the economy and helped reduce the inter-banking lending rates.
09:54, 2021/54/20
Vietnam household spending to return to conventional patterns in 2022: Fitch Solutions
The estimated consumer spending growth of 5.7% in 2022 stays in line with the agency’s forecast of economic growth by a real rate of 8% year on year.