Stocks seen flat this week

Stock brokerages have forecast the local stock market may not fluctuate strongly in the first week of October as investors remain cautious over uncertainty on the world economy.

The market ended last week with one rising and four falling sessions, with the VN-Index losing 12.7 points, or 2.88%, to close at 427.6. Liquidity dipped as the average daily volume was 45.1 million shares worth nearly VND812.4 billion, down 0.4% and 13.6% against a week earlier.

Vietnam International Securities Co. (VIS) said investors entered the final session of last week with caution given local market risks, limiting buying power. So the market is not expected to rally in short term.

This week, many listed firms will announce their earnings of the third quarter and the January-September period while investors will look forward to solutions to the euro zone’s debt crisis.

However, VIS cast doubt on the long-term impact of the solution package on global financial markets, saying it would not have clear impacts on the VN-Index.

APEC Securities Co., meanwhile, noted the local macro economic situation was not positive last week. The nation’s consumer price index in September rose 0.82% against the previous month, the lowest increase since early this year. However, the figure still disappointed investors as Hanoi’s September CPI was much lower, at a mere 0.2%.

Besides, cash flows did not make their way into the equity market after big amounts of money were withdrawn from banks and possibly poured into the gold market. Local gold prices were up to VND5 million a tael higher than global levels last week, showing the yellow metal remained a safe haven of choice for people.

“Technical analysis and low liquidity during the week suggest that the VN-Index may not rise strongly in short-term. Since stock markets worldwide still jitter, investor sentiment may not be strong enough to cause a buying frenzy,” the broker commented.

“We see both global and domestic factors fail to support the market now. Investors should not join the market and consider stopping losses this week.”

The Hanoi market also saw four falling and one rising session last week with the HNX-Index dropping 3.24 point, or 4.34%, from a week earlier to 71.34. The average daily trading volume was 41.1 million shares worth VND447.9 billion, rising a slight 1.3% in volume but falling 3.3% in value respectively. VIS predicted the market to move flat this week.

Source Saigon Times

Tags: vietnam stock, Vietnam stock market, VNindex