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Market comment - July 6
Market comment of July 6 is as follows:
Announcements of companies’ good results in the first half improved investors’ sentiment and that helped push up the index Monday. Investors’ psychology is stronger now as they believe the index’s correction will not be too deep, so they didn’t sell the stocks en masse when the VN-Index fell last week.
The index will advance this week as more companies are expected to release their earnings. For the longer term, it is difficult to forecast the level of the VN-Index. Money will not be available as much as in the first half when the government pumped a lot into the economy to bolster growth.
Nguyen Anh Tuan,
Head Analyst at Financial Advisory Company Tai Minh Corp.
Foreign investors have been showing signs that they might stop buying since early this month. So cash flows from domestic investors will be the major factor that can drive the market.
Commercial banks’ deposit interest rates remain high, averaging to 8.53 percent a year, the highest level since they started to increase in February. The high rates will affect the cash flows pouring into the market.
We expect the market to correct early this month, with the 400 mark being the VN-Index’s resistance level. Construction stocks are our top picks as construction remains a key sector set to boost Vietnam’s economy this year.
Saigon Securities Inc.
Recent cash flows pouring into blue chips like PetroVietnam Chemical and Fertilizer Joint Stock Co. (DPM), steel maker Hoa Phat Group (HPG), Sacombank (STB) and FPT Corp. (FPT) have prevented the market from plummeting.
We expect the market to be back on an upwards track this week, with the VN-Index fluctuating between 420 and 450.
Dai Viet Securities Co.
thanhnien, dtck, bloomberg
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