Profit takers seen active this week
HCMC – Securities enterprises have predicted the VN-Index will drop further this week as profit taking is seen accelerating.
Bao Viet Securities Company said in a report that the index of the HCMC bourse might enter into a correction as profit takers will continue seeking gains.
However, the correction can only be measured after the first sessions of this week. Investors should avoid buying new stocks and take opportunities to restructure their portfolios during falling or rising sessions, it said.
According to BIDV Securities Company, market breadth turned negative last Friday, indicating that profit takers were active in most sectors. The VN-Index oscillated within a wide range of up to eight points.
The market is expected to go through a correction range between 775 and 785 points in the medium term. However, as market turnover remains strong, the market may recover and hover around 780 points in the next few days.
Viet Capital Securities Company said the VN30 and VNMidcap indexes have shown signs of turning from ‘positive’ to ‘normal’. The VN-Index and HNX-Index are now still above the short-term supporting lines at 775 and 100 points respectively.
The strong slump at the end of last Friday’s session showed that investors looked to protect their earnings. As the VN-Index did not break the supporting level of 775 points, the market may recover early this week. However, this is also a chance for investors to take profits buoyed by higher share prices, the brokerage said.
Viet Dragon Securities Company, meanwhile, said the correction may be short-lived and the market will still have a positive outlook in the near term. Investors may acquire new stocks at low prices if the stock indexes maintain their short-term supporting levels.
Last Friday, the VN-Index saw gains above 783 points until early afternoon when strong selling drove the market down to its worst day since late May, closing at the low of the session at 775.73.
The selling appeared to be driven by technical factors as traders eyed a strong resistance level of 790 points. The decline drove the index down 0.1% for the week, its first weekly loss in five weeks, said Viet Capital Securities Company.
Dairy firm VNM, the largest listed company by market capitalization, suffered its biggest one-day loss of 2017, having advanced 27% in the year to last Thursday. In the securities sector, SSI and HCM saw investors taking profits after the brokerages had surged 31% and 51% respectively in the two months to Thursday.
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