VNStockNews.com - Securities firms predicted the market would move in a narrow range again this week with the VN-Index hovering between 400 and 410 points as they had yet to see signs of recovery.
The market ended the previous week with three rising sessions and two falling both at very modest rates. The VN-Index dipped 3.5 points, or 0.85%, against the previous week to close at 405.7.
Liquidity on the southern market stayed dull, averaging out at 21.4 million shares worth VND371.4 billion daily, up 13.4% and 6.9% respectively.
Vietnam International Securities Co. (VIS) said the market suffered seesaw transactions during last week as investors were still cautious given unclear developments of the index and macroeconomic risks. The VN-Index failed to touch 410 points in the first three rising days and dropped to near 400 points then.
“The market is very sensitive to information and the VN-Index will plunge sharply upon any single unfavourable policy or news and vice versa. We think the flat trading will repeat this week as the market has no motive to move up now,” VIS said.
Au Viet Securities Co. said the State Securities Commission admitted troubles in trading authorization notarization while Circular 74 will take effect on Monday. However, a capital flow from Japan is expected as recovery signs for the equity market and this is positive news for the local market in the coming time.
Fiachra Mac Cana, managing director of HCMC Securities Corp., said the earnings season continued to produce more positive than negative surprises in general.
“For manufacturing and food and beverage companies in particular, we are seeing clear evidence of rapid consolidation within sectors with the category price leaders gaining market share at a steady pace and at the expense of smaller players. Examples like VNM, HPG and BMP immediately spring to mind,” he commented.
“While overall sector growth may have slowed, by taking market share and being able to push through at least some price increases to compensate for higher input costs, these companies have been able to post decent top line numbers with only some margin slippage. They also have strong cash balances which are a big plus in this environment. And we think the above may at least partly explain why many blue chip companies can post strong first half results despite high interest rates and general weakness in the economy,” Mac Cana said.
The Hanoi market saw three falling and two rising sessions last week, with the HNX-Index losing 1.33 points, or 1.88%, from the week earlier to 69.55. The market’s liquidity was lower with the average daily volume of 17.9 million shares worth VND196 billion. VIS said the market would move sideways this week.
