This picture taken on May 28, 2012 shows Vietnamese workers walking past the Stock Exchange building in Ho Chi Minh City. AFP PHOTO/Francois MAY
HANOI: The stock market experienced a volatile week after a previous strong performance.
Improved cash flow supported the VN-Index, which at one point reached 1,297 points. However, selling pressure emerged towards the end of last week, erasing earlier gains.
On the Ho Chi Minh Stock Exchange (HoSE), the VN-Index closed the week at 1,280.75 points, while the HNX-Index on the Hanoi Stock Exchange (HNX) ended at 245.02 points.
The VN-Index benchmark index recorded a slight fall of 0.18%, while the HNX increased by 1.12%.
The average daily transaction value across the market was 19.5 trillion dong per session, a significant rise of 16.6% compared to the 16.7 trillion dong recorded the previous week.
Foreign investors continued to sell. Last week, they net sold 4.5 trillion dong on the HoSE and 4.68 billion dong on the HNX.
Phan Tan Nhat, head of analysis at the Sai Gon-Hanoi Securities, pointed out support for the market, with the International Monetary Fund (IMF) recognising Vietnam’s rapid economic recovery in the first half of 2024, forecasting growth at 6.4% year-on-year.
According to the IMF, Vietnam’s economy continues to integrate and has significantly recovered, with a growth rate of 6.4% compared with the same period last year.
The IMF experts expect positive economic prospects towards the end of the year, with inflation remaining close to the 4.5% target.
Technically, Nhat noted that the VN-Index experienced a volatile week within a narrow range, facing mild adjustment pressure when approaching the 1,300-point resistance level, corresponding to the peaks in June 2024 and August 2022.
The past week’s market movements reflected the short-term rotation of cash flow through the alternating recovery of different stock groups.
“The VN-Index has yet to overcome the resistance around 1,285 points, the highest level during sharp declines with a surge in liquidity in April, May, and June 2024,” Nhat added.
In the short term, Nhat believes the VN-Index will continue to consolidate within the 1,250-1,300 point range. After encountering strong resistance around 1,300 points, the index is under adjustment pressure, testing the equilibrium price area of around 1,275 points, corresponding to the 20-day moving average.
In the medium term, Nhat assesses that the VN-Index will continue to accumulate within a narrowing range of 1,245-1,255 points to 1,300 points.
According to Nhat, market liquidity remains low as investors await information on second-quarter business results. On that basis, the market is expected to exhibit positive accumulation (if no new negative factors emerge) and the VN-Index is likely to head towards the resistance around 1,300 points when factors such as global geopolitical tensions, inflationary pressures, exchange rates, and foreign net selling ease. — Viet Nam News/ANN
