HCMC - Given the slight movement during last week and no optimistic news on
macro economy, securities companies don’t expect any strong rallies on the
equity market this week. The VN-Index closed last week at 385.71 points,
falling 1.2 points on Friday alone but decreasing only one point for the whole
week.
The dreary trade on the stock
market has persisted for the last three months with similar daily scenario of
low liquidity and indexes moving in a narrow range. Last week saw trade
averaging out at 29 million shares a day, compared to an average volume of 31.2
million in the week before. On Friday, the southern market saw 102 stocks
increasing and 98 falling with 25 hitting the ceiling prices and 41 tumbling to
the floor prices.
Technical analysis of Ho Chi Minh
City Securities Co. (HSC) shows that the investors are still cautious so the
pressure of short-term profit taking will rise when shares that were bought at
low prices will arrive investors’ accounts in the next days. The company gives
neutral view on the market’s middle term movement.
Viet Capital Securities says that
low liquidity is an indicator for a new recovery of the market. However, the
market would face strong selling at the level of 390 points on the VN-Index,
and if the market can’t break this level, it will start a short-term downtrend
again, the broker said.
Meanwhile, technical analysis of
Saigon Securities Co. (SSI) indicates that the VN-Index can continue rising if
it can break the 388-389 level.
Saigon-Hanoi Securities Co.
expects that the HCMC market would see slight increase today but given low
liquidity, the company does not expect a strong momentum in the market for an
uptrend.
Nguyen Son, head of the
Department of Market Development under the State Securities Commission, told
the Daily that the commission had taken many measures to help increase the
market liquidity like applying market order, lengthening trading time, and
reducing payment time to T+3. However, he said the technical measures hardly
supported the market this time as it had suffered bad news from the macro
economy like bad debts at banks and bad business results of companies.
The HNX-Index of Hanoi Stock
Exchange last Friday rose 0.12 point to 51.81. However, compared to the
previous day, the traded volume on the exchange declined by 28% to 19.9 million
shares worth VND113.6 billion.
Thuy Trieu - The Saigon Times
Daily
Business & Investment Opportunities
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