Anticipated VN-Index Rebound to Test 1,240 Level Post-Public Holiday
🏘️ Stock Market Outlook in Hanoi 🏘️
HANG CITY - Get ready for another exciting week in Vietnam's stock market as the recovery momentum looks set to continue! Our experts predict that the optimistic tone will persist, with the VN-Index potentially breaching the 1,240-1,241 range in the initial sessions. The index might even storm ahead towards the 1,260-1,270 zone if it manages to break through the initial barriers.
Curious about what's driving this bullish sentiment? It's all about the alignment of key factors!
- Corporate Results: Good news is brewing for listed companies. Upbeat first-quarter business results are expected, which could give the market a much-needed boost. Some sectors like banking, retail, seafood, electricity, and public investment are anticipated to shine, strengthening the VN-Index.
- KRX Launch: The official launch of the KRX trading system is just around the corner! Scheduled for May 5, the KRX system is set to revolutionize the market by increasing trading efficiency, enhancing transparency, and luring more foreign investors. All of this can lead to boosted liquidity and increased trading value in the long run.
- Trade Talks: Positive developments in U.S.-China and U.S.-Vietnam trade negotiations are lifting investor spirits. These encouraging signs shape up as potential catalysts for a market rebound, although it's important to keep a cautious eye on external risks.
🎯 Market Insights 🎯
Head of Macro and Market Strategy at VNDirect, Đinh Quang Hinh, suggests that in addition to easing corporate earnings, the operation of the KRX system would pave the way for innovative product development. It could also take Vietnam one step closer to its goal of moving from a frontier to an emerging market under FTSE and MSCI standards.
With all these positive signs, investors are encouraged to maintain a balanced portfolio and focus on sectors with bright prospects such as banking, retail, seafood, electricity, and public investment. However, keep in mind that the market volatility remains high due to unresolved tariff risks. As such, the wise move would be to apply restraint in the use of financial leverage and wait for clearer signals before escalating stock exposure.
Looking back on the week from April 21-25, the VN-Index was a rollercoaster ride! It plummeted significantly to 1,137 points on April 23, but recovered impressively to close the week at 1,229.23 points. Analysts from CSI Securities attribute the rebound to timely bottom-fishing demand that successfully reversed the market's course, despite initial concerns over the impact of new US tax policies.
The real estate sector, led by VIC and VHM, played a significant role in the market's recovery, while the banking sector lagged behind. Liquidity improved notably, with matching order value leaping by 41.7% compared to the 20-week average, pointing towards a steadier investor sentiment. Foreign investors returned to net buying, investing heavily in HPG, MWG, and VRE, totaling VNĐ466 billion during this period.
🔍 Market Analysis 🔍
Saigon - Hanoi Securities (SHS) believes that the VN-Index is currently forming a consolidation zone around 1,200 points, an important level that has served as both a support and a resistance in the past. The market is expected to continue consolidating within the 1,210-1,230-point range before attempting to test resistance at 1,250 points, with the nearest support level around 1,195 points.
Nevertheless, caution remains in order due to residual suspicious sentiment. Liquidity declines during the final session of the week compared to the average, as indicated by KIS Việt Nam Securities and VCBS, which suggests that investors should tread carefully, particularly during the upcoming long holiday. These organizations recommend closely monitoring the market, and increasing stock exposure only if the VN-Index drops back to the 1,180-1,200-point support range.
So there you have it! Investors, buckle up for an exciting week ahead as we navigate the twists and turns of Vietnam's stock market. Keep your eyes peeled for the factors we discussed and remember to tread wisely! 💥🎉👏🏼🚀🚀🚀
Investors monitor stock market movements at MB Securities Joint Stock Company (MBS). - Photo Bnews.vn
- The optimistic sentiment in the stock market, as outlined by the predicted recovery of the VN-Index, is influenced by a combination of factors, including corporate earnings, the launch of the KRX trading system, and positive developments in trade talks.
- Đinh Quang Hinh, the Head of Macro and Market Strategy at VNDirect, emphasizes that the operation of the KRX system could spur innovative product development and help Vietnam progress towards the status of an emerging market under FTSE and MSCI standards.
- Investors are encouraged to maintain a balanced portfolio, focusing on sectors like banking, retail, seafood, electricity, and public investment, but are advised to use financial leverage sparingly due to market volatility, especially regarding unresolved tariff risks.
- During the week of April 21-25, the VN-Index saw a significant drop and recovery, with the rebound attributed to timely bottom-fishing demand and strong performances from the real estate sector.
- The Saigon - Hanoi Securities (SHS) has assessed that the VN-Index is currently consolidating around 1,200 points, a key level serving as both support and resistance in the past.
- Caution is advised for the upcoming long holiday, as decreased liquidity during the final session of the week indicates potential investor caution, according to KIS Việt Nam Securities and VCBS.
- With all these factors in mind, investors are urged to keep a close watch on Vietnam's stock market, staying alert to the opportunities and potential risks as they navigate the market's ups and downs.
