Foreign investors net bought nearly 1,100 billion VND, forecasting Vn-Index next week

Cash flow is untied

The week of August 12-16 saw the Vietnamese stock market trading in a tug-of-war mode. The main index fluctuated within a narrow range and liquidity dropped sharply, partly reflecting investors’ cautious sentiment.

However, in the last session of the week, the cash flow was untied after the derivatives expiration session, the massive demand poured into the market, helping the VN-Index increase by nearly 30 points, erasing the hesitation in the previous sessions. Retail (+3.42%), construction (+4.13%), industrial real estate (+4.23%), securities (+6.17%)... are the main leading sectors of the market, showing the confirmation of a quite convincing explosive session.

Besides, liquidity also supported the index's growth momentum very well in the last trading session of the week with the matched volume exceeding the 20-session average (+49.35%), giving another strong signal confirming that the uptrend is returning.

Closing the trading week from August 12-16, the VN-Index stopped at 1,252.33 points, up 28.59 points (+2.34%) compared to the previous weekend (illustrative photo).

With the weekend's acceleration session, the market officially conquered the resistance level of 1,250 points. Closing the trading week from August 12-16, the VN-Index stopped at 1,252.33 points, up 28.59 points (+2.34%) compared to the previous weekend. Although the weekend session increased sharply with improved liquidity, the gloomy trading in most of the previous sessions pulled the average matched liquidity on the Ho Chi Minh City Stock Exchange to VND14,912 billion, down 16.91%.

Foreign investors had their first week of net buying in August with a cumulative trading value of nearly VND1,100 billion. The focus of net buying last week was on stocks such as HDB (VND734 billion), KDC (VND453 billion), FPT (VND379 billion)... Looking at each floor separately, foreign investors net bought VND1,066 billion on HoSE, net bought VND44 billion on HNX and net sold VND22 billion on UPCoM.

Forecast of Vn-Index fluctuations

According to statistics, 24 companies announced dividend payouts during the week of August 19-23. Of these, 20 companies paid cash dividends this week, the highest being 30% and the lowest being 2%. In addition, this week, 2 companies paid stock dividends, 1 company paid bonus shares and 1 company paid combined dividends.

According to the assessment of Vietnam Construction Securities Joint Stock Company, the momentum of the increase can pull the VN-Index to 1,260 points next week. At this level, investors should prioritize taking profits on a part of their portfolio, then patiently wait for the VN-Index to adjust and test the support level around 1,236-1,240 points before buying back the sold position.

After testing this threshold, the VN-Index is expected to continue the uptrend that was confirmed in the explosive session at the end of the week.

According to Saigon-Hanoi Securities Joint Stock Company, the short-term trend of VN-Index has become more positive. VN-Index may face short-term profit-taking pressure in the early sessions of next week before returning to conquer the resistance of 1,250 points once again.

In the medium term, the VN-Index has fluctuated within a wide range of 1,180 - 1,300 points since the beginning of the year. If the VN-Index can surpass the resistance level around 1,250 points, the medium-term trend is still expected to return to the accumulation channel of 1,250 points - 1,300 points. Short-term and medium-term investors should maintain a reasonable proportion, limit chasing when the VN-Index recovers to the 1,250 point area, and wait for the VN-Index to make a short-term adjustment (expected in the first sessions of next week) before opening a new buying position.

Last week, comments on market developments were quite cautious. In particular, Vietcombank Securities Company (VCBS) did not make a forecast on market trends and recommended that investors take advantage of the fluctuations in the session to disburse part of their investments in stocks that tend to move in sync with the recovery of the general market.

An Ha

Source: https://www.congluan.vn/khoi-ngoai-mua-rong-gan-1100-ty-dong-du-bao-vn-index-tuan-toi-post308208.html