Stocks are expected to continue rising this week.

Analysts expect the market to continue its green streak as signals showing a short-term uptrend are established.

Assessing the stock market trend, Mr. Dinh Quang Hinh, Head of Macro and Market Strategy Department of VNDirect Securities Company, said that "the short-term uptrend of the market has been established".

The more positive developments last week, according to this expert, were due to the return of domestic investors' cash flow after withdrawals at the end of April. This was reflected in the 14% increase in market liquidity in the last trading week. In addition to cash flow, the market also received recent supportive information that had a positive impact on the outlook.

Accordingly, experts from VNDirect recommend that investors can increase the proportion of stocks if the VN-Index re-tests the area around 1,050-1,055 points, prioritizing industry groups such as banking, securities, public investment (infrastructure construction, construction materials) and energy (electricity, oil and gas).

On the contrary, the strong resistance level to watch is the 1,080-1,110 point zone. "Investors should note not to chase high prices if the VN-Index approaches the above resistance zone," said Mr. Hinh.

Sharing a positive view, Saigon - Hanoi Securities Company (SHS) believes that the market in the short term has formed an upward wave and opened up opportunities for surfing.

"Short-term investors should take advantage of market corrections to increase their stock holdings," the SHS report said. In the long term, SHS predicts that the market may move in a recovery wave of 1,000 - 1,100 and may form an uptrend if the VN-Index surpasses 1,150 points.

Trading at a securities company counter in District 1, Ho Chi Minh City. Photo: Quynh Tran — Trading at a securities company counter in District 1, Ho Chi Minh City. Photo: *Quynh Tran*

KB Vietnam Securities Company also forecasts that VN-Index is likely to continue its upward momentum in the first session of this week and head towards the near resistance level around 1,070 points.

However, the company's analysis team is more cautious in its assessment, with the medium-term downtrend still dominant, the formation of a sideways movement lasting more than three months is creating more risks than opportunities. KB Vietnam recommends that investors temporarily stay out of the market or only participate with a low proportion.

Last week, the VN-Index traded positively with 4/5 sessions increasing. At the end of the week, the HoSE index increased by 2.6% to 1,066.9 points. On the Hanoi Stock Exchange, the HNX-Index increased by 3.5% to 215.1 points, while the UPCOM-Index increased by 3.2% to over 80 points.

Market liquidity also improved with the average trading value increasing by more than 14%, to more than VND13,000 billion per session. Foreign investors reduced their net selling scale on HoSE by 71%, with the net selling value last week being only nearly VND150 billion.

Increased demand helped many sectors gain points last week, such as banking, real estate and securities. Of which, the banking group had the largest contribution to the market's increase, led by VCB (up 3.3%), BID (3.6%), CTG (2%) and ACB (1.4%).

The real estate sector also continued to recover thanks to some projects having their legal problems resolved, with VHM closing the week up 4.5%, DIG (8.4%) and DXG (11%). Steel stocks and securities stocks were similar.

Minh Son

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