31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Banking & Finance
Vn-Index under pressure to return to 1,300-1,320 this week
Ngoc Mai 17:18, 2021/08/24
Investors have been more cautious against the backdrop of the global economy on the downside and Vn-Index’s unsuccessful attempts to surpass the 1,380-mark.

Selling pressure from last Friday’s session put the benchmark Vn-Index back to 1,329.43, down 45.42 or 2.04% against the previous week, which could be seen as a sign that the index may be under further pressure and stay around 1,300-1,320 this week.

 An investor at a securities company in Hanoi. Photo: Tran Quynh

In addition to a falling Vn-Index, foreign investors also stepped up their efforts to sell with a net amount of VND5.7 trillion (US$250.6 million) during the period, marking their highest net-sell figure for nearly three months.

According to MB Securities Company (MBS), the sharp fall from last Friday came with high liquidity of VND38 trillion ($1.67 billion) is a cautious sign, but noting “further assessment is required to confirm the market trend at the moment”.

For the time being, Vn-Index expected the Vn-Index to hover around 1,320-1,360 for the first few days before the trend becomes more visible.

Sharing the view, Yuanta Securities Company added the market would continue the correction phase at the beginning of the week and takes the Vn-Index to around 1,300.

“The market, however, would soon recover as investors wait for the market sign and return,” Yuanta stated in a note.

Yuanta also advised investors to refrain from selling their stocks when the Vn-Index is on the decline but could consider doing so as the index rises up.

The Vietcombank Securities Company (VCBS) the 1,300-mark is seen as a supporting zone for the Vn-Index to accumulate and recover.

“The fact that the global economy is on the downside amid serious Covid-19 situation and Vn-Index’s unsuccessful attempts to surpass the 1,380 mark causes investors to become more cautious,” it added.

“Investors should continue to monitor the market in the next few trading sessions before making purchase decisions,” stated the VCBS.

On a less optimistic view, the BIDV Securities Company (BSC) noted a sudden surge in liquidity in last Friday session to VND38 trillion showed investors are selling their stocks after the market recovery in the past month.

“The Vn-Index may stick around 1,320 this week, and if successful, it could go up to 1,350, otherwise, the market may go down to 1,260,” stated the BSC.

RELATED NEWS
TAG: Vietnam VN-Index stock market HOSE securities
Other news
18:21, 2022/21/08
Vietnam's positive outlook lures foreign investors back to stock market
The central bank’s flexible management of monetary policy and the return of capital into markets around the world would have positive impacts on Vietnam’s market.
20:42, 2022/42/04
Banking industry urged to complete digital transformation legal framework
The banking industry needs to continue investing in shared payment and credit information infrastructures.
15:40, 2022/40/04
VND remains most stable currency in region: Report
With the internal strength of the currency and the central bank's flexible management, the VND is expected to depreciate by a maximum of 3% in 2022.
13:07, 2022/07/31
Big techs pay Vietnam US$20 million in taxes in three-month period
Vietnam is now among the first four Southeast Asian countries collecting taxes from offshore service providers that currently do not have a representative office in the host country.
10:01, 2022/01/29
Vietnam’s consumer demand for gold surges 11%
The surge in gold demand comes from fears of inflation and the weakness of the Vietnamese dong.
18:06, 2022/06/27
Vietnam’s Q3 GDP growth at 10.8%: Standard Chartered
Standard Chartered economists expect the State Bank of Vietnam (SBV) to keep the policy rate on hold at 4.0% in 2022 to support economic growth and businesses, despite rising inflation.