|
Market comment – Aug. 5
Market comment of Aug.5 is as follows:
Corrections ahead
The VN-Index opened lower Wednesday despite overnight gains in the US. However, it rebounded later, in the two last sessions, to close at 481.29 points.
We can see that the upward trend is becoming weaker in the short-term. Investors should not be so excited at the moment as the VNIndex may see some corrections this week because of profit-taking.
To be safe, investors should keep patient and wait for the market’s corrections before buying shares.
Nguyen Anh Tuan
Head of brokerage, HCMC-based Viet Dragon Securities Corporation
The markets recovered from a bout of uncertainty early on and made fairly steady gains again Wednesday. Volumes were slightly down on Tuesday and foreign selling pressure increased although they still ended up net buyers on the day. Market breadth was slightly narrower overall although it was still positive in Ho Chi Minh City. Hanoi was more undecided with gainers and losers equal in number.
By sector, bank stocks were slightly weaker overall Wednesday after some recent gains and this prevented the index from making any big moves. However, Vinamilk (VNM) and Sai Gon
Telecommunication & Technologies Corporation (SGT) continued to move higher and this caused the technology and consumer goods sectors to lead the market for the third consecutive day.
The market’s tone is still fairly positive overall with healthy volumes and good bid levels seen in HCMC Wednesday. However, we are still seeing some selling pressure in Hanoi at the moment where the market seems to be trading in a narrow range. Sentiment in HCMC is more robust but the current slow and grinding upward pace may continue for the time being.
Fiachra Mac Cana
Managing Director, Ho Chi Minh City Securities Corporation (HSC)
The trend for the stock market is relatively positive for many reasons.
Firstly, the difference with previous rallies is that the benchmark index is gaining without becoming overheated and trading volumes are quite high. Besides this, foreign investors kept buying in July and continue to be net buyers. This move reflects expectations for gains in the stock markets.
One of the major factors, I think, is that Vietnamese shares are quite cheap compared with other markets in the region.
Another very important reason is that the global economy is showing signs of getting out of the recession much quicker than anticipated, and this is a driving force for global stock markets.
Sentiment among individual investors locally, the main driver of the Vietnamese market, is very stable and much more optimistic about the economic recovery as well as earnings of listed companies.
All these factors will help the benchmark VN-Index to rise to more than 500 in the short-term.
We anticipate the index is poised to go as high as 650 by the end of the year.
Nguyen Trong Nghia
Hanoi-based head of the investment consulting department at ThangLong Securities Inc.
THANHNIEN, BLOOMBERG
|
