31st Sea Games - Vietnam 2021 Covid-19 Pandemic
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
12:00, 2023/00/22
Hanoi eyes comprehensive development in 2023: Mayor
In 2023, the city is determined to successfully implement its yearly socio-economic goals and realize part of the 2021-2025 key development tasks.
16:54, 2023/54/18
EU, Germany fund to enhance public financial management in Vietnam
A robust public finance management system will enable Vietnam to achieve its long-term socio-economic growth.
13:56, 2023/56/17
Vietnam proposed 30% cut in land lease in 2023
Last year, a similar cut caused the state to miss out on VND3.5 trillion (US$150 million) in revenues.
14:58, 2023/58/14
Vietnam's foreign reserves to return to US$100-billion mark by year-end
During the first 10 months of 2022, the State Bank of Vietnam (SBV) was forced to sell an estimated 20% of total foreign exchange reserves to stabilize the exchange rate.
11:03, 2023/03/07
Vietnam’s 2023 GDP growth forecast at 7.2%: Standard Chartered
The forecast comes from the country's solid growth of 8% in 2022.
21:25, 2023/25/05
Gold of high interest for Vietnamese investors to combat inflation
As many as 73% of Vietnamese investors still believe in digital assets, despite market turbulence in 2023.