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| Investors monitor stock market activity at the Ho Chi Minh City Stock Exchange (HoSE). — VNA/VNS photo |
HANOI — Stock markets trended sideways last week as hopes of a market breakout to recapture the 1,300-point peak failed to materialise and continued volatility tested investors’ patience.
Moreover, trading volume is below the 20-day average, indicating investor caution.
The Ho Chi Minh Stock Exchange’s (HoSE) VN Index closed last week at 1,282.02 points, while the Hanoi Stock Exchange’s (HNX) HNX Index closed at 244.36 points.
Both benchmark indices recorded slight weekly gains, with the VN Index and HNX Index each up 0.16%.
Liquidity on the HoSE dipped slightly, with market turnover at VND23.4 trillion ($919 million) per session, down just 4.4 percent from the previous week.
Foreign investors continued to sell heavily, with net sales of approximately VND1 trillion per session from June 17 to 21. Blue chip stocks were the main focus, with FPT shares accounting for a quarter of the net sales. On the Ho Chi Minh Stock Exchange, foreign investors sold stocks for the fifth consecutive session, with net sales of 139.8 million shares worth VND4.9 trillion, up 1.64% in volume but down 10.1% in value compared to the previous week.
Saigon Hanoi Securities (SHS) analyst Nguyen Khac Thanh said there were positive signs in the market, noting that the VN Index frequently tested the strong support level around 1,270 points before rebounding to around 1,280 points. However, liquidity on both exchanges weakened compared to the previous week, reflecting investor caution ahead of the maturity week of derivative contracts and the restructuring of ETF portfolios.
After a week of correction pressure, the market experienced strong fluctuations around the resistance level of 1,300 points, which corresponds to the upper limit of the medium-term trend line. Thành noted that the market traded in a narrow range of 1,270-1,285 points for five sessions. The 1,285-point level is the highest since September 2022 and May 2024, according to SHS data.
The VN Index ended the week above the 20-day average level of about 1,280 points due to highly differentiated trading activity and reduced liquidity. Thành expects the VN Index to continue accumulating within the range of 1,250-1,300 points and hover around 1,280 points. The current movement suggests that the VN Index is aiming to surpass the 1,285 point level and return to the resistance area of 1,295 points. In a less optimistic scenario, the VN Index may trade between 1,250-1,280 points.
The analysis team at Vietcombank Securities (VCBS) highlighted that signs of weakening of the US economy caused gold prices to surge to a two-week high. Specifically, global gold prices surged on June 20 after data showed a slowdown in the US economy, strengthening expectations that the Federal Reserve (FED) may start cutting interest rates in September. Analysts noted that bullish speculators have regained the upper hand in the gold market, targeting prices above $2,400 per ounce. Meanwhile, major central banks remain cautious on interest rates.
Domestically, the VNS Index ended the week slightly lower, reflecting cautious sentiment in the 1,270-1,290 point range, VCBS analysts observed. Technically, the indicators remain unclear, suggesting the market needs more time to find a balance point. However, significant volatility risks in the short term are not a major concern. — VNS
