Stock analysts anticipate VN-Index would continue to rise this week, though selling pressure could prevent the benchmark from skyrocketing.
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The index rose 15.6 points last week, or 1.16 percent, having gained over 9 percent since its previous bottom last month. Average daily trading value rose 14 percent from the previous week to VND23.8 trillion ($1.05 billion).
“The index continues to recover strongly after surpassing 1,300 points, showing investors have become more optimistic,” analysts at Vietcombank Securities said in a note.
There could still be selling pressure in the short term but the fall won’t be too large and the index would bounce back right after, they added.
Investors should consider buying during corrections with focus on leading sectors like banking and oil with priorities for businesses with good financial results and prospects for the rest of the year.
Analysts of BIDV Securities said 18 out of 19 sectors rose with 259 tickers gaining and 109 losing.
But with increased foreign investor selling in the last two sessions last week, the index could fluctuate around 1,330-1,380 points this week, they held.
The fact that Fubon FTSE Vietnam ETF had registered to raise $180 million could create a positive effect on the market, it was added.
Analysts of KB Securities Vietnam, however, are more conservative since the index last week failed to breach the 1,360-point resistance.
They advise investors to continue holding on to their stocks for the medium term.