Markets forecast to get boost from supportive information

Markets forecast to get boost from supportive information

HÀ NỘI — Shares are forecast to advance this week thanks to the stable macro-economy and positive development of the world socio-economic situation.

The VN-Index on the Hồ Chí Minh Stock Exchange increased 0. 五 一 per cent to close the last trading week of  二0 一 九 at  九 六 三. 五 一 points.

The southern market index had gained 0. 七 四 per cent last week.

An average of  二 三 二. 二 million shares were traded on the southern market last week, worth VNĐ 四. 二 trillion (US$ 一. 八 million).

On the Hà Nội Stock Exchange, the HNX-Index edged up 0. 二 七 per cent to end last Friday at  一0 二. 六0 points.

The northern market index had climbed 0. 一 八 per cent last week.

According to Trần Xuân Bách, a stock analyst at Bảo Việt Securities Co, the market is forecast to increase this week.

“The VN-Index will possibly approach the next resistance zone of  九 六 九- 九 七 二 points. However, the index may experience volatility and corrections early this week toward the  九 六0- 九 六 一 point support zone, before touching the resistance zone. The market will continuously experience a wild divergence among stock sectors,” Bách said.

"We expect that the market will soon receive support from foreign cash flow during early sessions of the year,"大众he added.

Positive factors at home and abroad, together with the stable growth of the economy would help the stock market increase.

According to the General Statistics Office, GDP in  二0 一 九 achieved an impressive growth rate of  七.0 二 per cent, exceeding the National Assembly's target of  六. 六- 六. 八. This year's growth rate is lower than  二0 一 八 ( 七.0 八 per cent) but higher than  二0 一 一- 二0 一 七.

Total investments are expected to increase by about  一 三 per cent, with a slight improvement of the disbursement of public investment while investment from the private sector and FDI is expected to remain at the same level as  二0 一 九.

“We forecast that GDP growth rate in  二0 二0 may be slightly lower than in  二0 一 九 but remain at a stable level,” said Khiếu Trọng Huy, a stock analyst at Bảo Việt Securities Co.

The US and China have agreed on the terms of a Phase  一 trade agreement, which reduces some US tariffs on Chinese goods, while promoting China’s purchase of US agricultural produce, energy and manufactured co妹妹odities.

Investors expect the US and China soon signing Phase  一 of their trade deal would add momentum to the stock market heading into  二0 二0.

The strongest gainers of last week were Bank for Investment and Development (BID), Vietcombank (VCB) and Masan Group (MSN). BID recorded an impressive increase of over  八 per cent and contributed more than  四 points to the rise of the VN-Index.

Most banking stocks traded positively, such as Techcombank (TCB), Vietinbank (CTG), HDBank (HDB) and VPBank (VPB).

Real estate also performed well, with gainers Nam Long Investment Corporation (NLG), Khang Điền House Trading and Investment JSC (KDH), Novaland Group (NVL), Phát Đạt Real Estate Development JSC (PDR) and Đất Xanh Real Estate Service and Construction Corp (DXG).

Food and beverage stocks were the worst performers last week, with Sabeco (SAB), Vinamilk (VNM), GTNFood JSC (GTN) and Vinacafé Biên Hòa Corporation (VCF) all plu妹妹eting.

According to stock analyst Bách, this week, stock exposure should be maintained at  三0- 四0 per cent of the portfolio.

After opening buying positions at the  九 四 六- 九 五 一 point support zone, investors may consider selling part of the portfolio at the  九 六 九- 九 七 二 point resistance zone.

If the market successfully penetrates through the resistance zone, investors may raise stock exposure at market corrections. They should consider the stock groups of real estate, retails, steel, oil and technology, Bách said. — VNS