Securities companies shared the view that the benchmark Vn-Index may return to its peak of 1,530, following the market’s upward trend for three consecutive weeks with improving liquidity and rising optimism among investors.
|Vietnam's stock market is set to be on an upward trend. Photo: Thanh Hai|
The stock market last week witnessed ups and downs with three declining sessions and two rises. The Vn-Index ended last Friday at 1,505, three points higher from the previous week, marking the three consecutive weeks the local market held to the 1,500-mark despite negative information from the global stock markets.
A report from the MB Securities Company expected investors to turn to stocks of small and medium companies, given the steady recovery from the last few weeks.
Liquidity has also been improved with nearly 700 million shares changed hands worth over VND22 trillion (US$963.2 million) during the period, higher than the average recorded in the previous 10 sessions.
Meanwhile, investors appeared to become more optimistic over the market performance, thanks to the de-escalation of the Russia-Ukraine situation, which could be a major boost for the major stock indexes and also of Vietnam.
“The Vn-Index has a chance to surpass the 1,530-mark,” stated Phu Hung Securities Company in a note.
Sharing the same view, experts at Dong A Securities Company considered the 1,530-1,535 points to be the resistant zone of the index.
“In case real estate stocks of small and medium companies continue to attract investors and those of steel firms stay upward, it is highly likely that the Vn-Index may surpass this mark,” Dong A stated.
Securities companies also called for investors to continue focusing on stocks from firms with solid fundamentals. Dong A expected stocks with high potential for recovery in the pandemic include those from aviation, tourism, retail, or seafood.
Meanwhile, Vietcombank Securities Company (VCBS) said despite the optimism from the market, the Vn-Index may hover around the 1,500 mark with a fluctuation of 10 points.
“Investors should remain cautious and refrain from being too committed to the market in case of unexpected correction,” stated the VCBS.