Shares are forecast to go up this week, propelled by foreign net buying and positive first-quarter business results from listed companies.
The VN-Index on the Ho Chi Minh Stock Exchange declined for a second day on Friday, concluding last week at 1,231.66 points.
The index increased a total of 0.59 per cent last week.
More than 702.4 million shares were traded on the southern exchange on average during each session last week, worth VND16.6 trillion (US$720.8 million).
According to SSI Securities Joint Stock Company (SSI), after surpassing the 1,200-point landmark, the next target for the VN-Index will be in the range of 1,350 – 1,400 points.
“Therefore, corrections, if any, will create opportunities for investors to increase their stock exposure at more reasonable price ranges,” SSI said.
MB Securities Joint Stock Company (MBS) said the market closed last week on a negative note but still recorded a second consecutive week of increase.
“The decline was foreseeable after the recent rising streak, Q1 business results, as well as outcomes from the shareholder meeting season, will be the driving force for the market to continue its uptrend,” MBS said.
Rong Viet Securities Joint Stock Company (VDSC) said the decline of the VN-Index last Friday was modest and there had been positive movements in some stock groups.
This showed the cash flow had not shown signs of withdrawing from the market but was circulating among stock groups and helping balance the market under short-term profit-taking pressure.
VDSC expected the market to gradually stabilise and regain a positive position in the near future.
“This week, the market will undergo fluctuations with a sharp divergence following the business results of each company,” said Bao Viet Securities Co.
“The VN-Index will be supported by the zone of 1,225-1,230 points in the first sessions this week. In the middle of next week, the market is likely to experience drastic fluctuations in the April futures contracts expiration date.
“The domestic cash flow continues to be the key driver, supporting the market’s trend during this period.
“Large-cap stocks, especially the leading ones, will increase to support the current movement of the market. Meanwhile, medium and small-cap stocks shall see exciting developments next week,” the company said.
“Investors should maintain the stock exposure at 65-80 per cent. They can consider lowering the proportion of short-term positions if the index falls below the support zone of 1,225-1,230 points.
“Investors with high exposure can consider selling to reduce the proportion of short-term positions when the market approaches the resistance zone of 1,250-1,265 points,” it said.
Regarding movements of the stock groups, information technology stocks increased the most thanks to the increase of the pillars in the group such as FPT Corporation (FPT), up 2.9 per cent.
The IT group was followed by the material construction stocks, with gainers such as Hoa Phat Group (HPG), up 1 per cent, Nam Kim Group (NKG), up 3.6 per cent, and Hoa Sen Group (HSG), up 4.3 per cent.
The finance group also gained well with Bao Viet Holdings (BVH), up 1 per cent, SSI Securities Co (SSI) up 2.8 per cent, VNDirect (VND) up 18.2 per cent, Techcombank (TCB) up 0.8 per cent, Vietinbank (CTG) up 2.9 per cent, VPBank (VPB) up 2.2 per cent and Military Bank (MBB) up 5.9 per cent.
The HNX-Index on the Ha Noi Stock Exchange inched up 0.01 per cent to close last Friday at 293.79 points.
More than 172.8 million shares were traded on the northern exchange during each session last week, worth VND3 trillion. — VNS