At the end of the trading week, the VN-Index recorded an increase of 2.5% in the week (May 29 to June 2) when it closed at 1,090.8 points, surpassing the long-term trend line MA200 to the highest level since early February 2023. The positive growth momentum also spread to the Hanoi Stock Exchange with the HNX index increasing sharply by 3.9% to 226.0 points and the Upcom index jumping 4.2% to 84 points.
Mr. Dinh Quang Hinh, Head of Macro and Market Strategy Department, Analysis Division, VNDirect Securities Joint Stock Company (VND):
Bank stocks help index explode
Following the State Bank of Vietnam’s (SBV) move to lower its operating interest rates, a series of commercial banks have adjusted their deposit and lending interest rates in the past week. The downward trend in interest rates has had a positive impact on the stock market.
Specifically, market liquidity continued to improve impressively with the average trading value on the three exchanges increasing sharply by 27.2% compared to the previous week, reaching VND18,509 billion/session. Along with the explosion of liquidity, stock indices had a breakthrough last week.
The point that did not improve last week was the continued net selling of foreign investors with a value of VND 1,185 billion on the Hose floor (although it decreased by 50% compared to last week), but foreign investors net bought VND 8 billion on the HNX floor and net sold VND 103 billion on the Upcom floor.
The stock market is benefiting from a wave of interest rate cuts.
The market exploded in points with a large contribution from bank stocks after a long accumulation period such as VCB, TCB, MBB, BID. The securities industry maintained an impressive growth momentum in the context of recovering market liquidity, typically VND, SSI, HCM... Domestic cash flow is gradually returning to the stock market in the context of falling interest rates.
Next week, the VN-Index may retest the 1,080-point mark and if it successfully maintains above this threshold, the Vietnamese stock market will shift from the "previous sideways trend" to the "upward trend".
Mr. Nguyen The Minh, Director of Analysis, Yuanta Vietnam Securities Company:
Cash flow is differentiated among index groups.
Next week, the market may experience a correction in the first trading session of the week after the VN-Index tests the resistance level of 1,095 points.
The nearest support zone for this index is 1,078 - 1,085 points, which is the price gap formed in the last session of the week 2-6. Cash flow will be divided among stock groups when selling pressure may increase on small and medium-cap stocks, especially penny stocks.
The short-term trend of the general market remains bullish. According to the weekly chart, the VN-Index recorded an increase of 2.5% compared to the previous trading week and the price chart showed signs of exiting the short-term accumulation phase, indicating that the medium-term uptrend may soon become clearer in the coming period. At the same time, medium-term risks remain low and the medium-term trend of the general market remains bullish.
Mr. Nguyen Thanh Lam, Director of Research and Analysis, individual client division, Maybank Investment Bank Securities Company:
Public investment disbursement contributes to stock market growth
Last week, the market moved in a favorable direction with a strong increase mainly from the first two sessions and the end of the week after the sideways sessions of the previous week. Information about the disbursement of public investment capital reaching 20.4% of the plan contributed to the market's growth. In the context of not much information left, negative information has subsided and the deposit interest rate environment has decreased, the cash flow from individual investors seems to have returned positively and somewhat more aggressively.
The data shows that domestic individual investors are almost net sellers, although the net buying value of the self-employed group has improved but not significantly. In addition, the group of long-term investors continues to be net sellers. Regarding the trend next week, some fluctuations may appear due to the need to take short-term profits when the index has more big breakthroughs. However, the main trend will continue to be upward.
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