Stock correction expected next week
Stocks in the local market are expected to seesaw next week, as market liquidity may rise sharply before the main index moves toward the resistance level of 1,000 points, according to securities firms.
 |
| A man sits opposite an electric board displaying stock prices in HCM City. (Photo:Thanh Hoa) |
Thanh Cong Securities Company said investors should refrain from buying stocks and consider taking profits in winning stocks.
Bao Viet Securities firm forecast that the main index of the HCMC bourse may reach the strong psychological level of 1,000 points in a short term. However, the profit-taking pressure will likely appear and build up in some groups of stocks. The brokerage recommended investors place focus on bluechips that are expected to reap positive business results in the second quarter of the year.
Meanwhile, according to BIDV Securities Company, the VN-Index is expected to hover around 985-1,000 points in next sessions.
Last Friday, the support of several bluechips saved the VN-Index from steep decline. Insurer BVH, tech firm FPT, steel maker HPG, and fuel distributor PLX managed to climb slightly, along with major bank stocks VCB and BID which added over 1%. Meanwhile, most of other bank stocks took a nosedive.
The benchmark index fell 1.6 points, or 0.16%, versus the previous day at 993.35, with 181 gainers and 121 losers. Market turnover decreased with over 150 million shares worth over VND4 trillion traded.
Put-through deals made a considerable contribution to the southern market with over 34 million shares worth VND1.4 trillion transacted. Particularly, over five million shares of housing developer VHM were traded in block deals, with a total value of VND450 billion.
Among many heavyweights dragging down the southern market, dairy giant VNM slipped 0.5% against the day earlier to close at the intraday low of VND124,500, the property firm VIC ended its winning streak in five consecutive sessions, dipping 0.9%. Brewery SAB and mobile phone retailer MWG encountered the same decline of over 1%.
Meanwhile, the strong demand saved construction firm ROS from steep fall to close at the intraday high of VND27,450 but it was still the most actively traded stock with almost 11 million shares changing hands.
Although transactions conducted by foreign investors fell sharply in number, the investors were active in the buying side for bank stocks, particularly VCB and SHB, on the two exchanges.
They net bought over 270,000 shares on the southern market, worth VND67 billion, up a staggering 70% against the previous session. Notably, they net bought over 470,000 shares worth over VND37 billion of lender VCB.
On the Hanoi market, selling pressure sent the HNX-Index down by 0.34%, or losing 0.36 points, to 106.4. Lender SHB led the northern market by liquidity with over four million shares traded. Foreign investors net bought over 89,000 SHB shares worth almost VND611 million.
