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Banking & Finance

October 17: VN-Index up over 1% in early trade

Released at: 11:09, 17/10/2018 Stock Market Watch

October 17: VN-Index up over 1% in early trade

Source: TVSI

Good news elsewhere met with positive reaction from investors.

by Van Hai

The recovery of the US stock market overnight and Asian stock markets this morning triggered a degree of excitement among investors in Vietnam and the VN-Index rose sharply from the opening minutes on October 17.

Strong gains were seen in banking, such as ACB, VCB, BID, CTG, MBB, and VPB, and oil and gas, such as GAS, PVD, PVS, PVB, BSR, OIL, and PLX.

Bluechips such as VHM, VRE, VIC, MWG, PNJ, VJC, FPT, BVH, and MSN also increased strongly to strengthen the market.

At 10am, the VN-Index had increased 10.06 points (1.04 per cent) to 973.43 points, the HNX-Index 1.25 per cent to 109.96 points, and the UPCoM-Index 0.72 per cent to 53.15 points. Liquidity was quite good, with a matching order value of VND1.1 trillion ($47.2 million).

BIDV Securities (BSC) forecast that real estate stock DXG is in a short-term uptrend after testing support at VND26,900 ($1.15). MA 20 and MA 50 tended to cut MA 100 from the bottom up, indicating short-term and medium-term uptrends. However, DXG’s price has been rising on declining liquidity.

BSC also announced its forecast for the stock market’s prospects over the closing months of the year. After a period of fluctuation, like in Asian stock markets, in the first two quarters of the year, Vietnam’s stock market began to show signs of differentiation in the third quarter. The foundation of these differences is that the macro conditions in Vietnam are in a more favorable state than in neighboring countries.

External factors are still very difficult to predict and largely in the negative direction. Global stock markets are starting to react more strongly due to the effects of the trade war, instability in certain markets, and tightened monetary policy by central banks.

Meanwhile, Viet Capital Securities is maintaining its buy recommendation for NLG, with a total projected profitability of 43 per cent. At the closing price on October 15, NLG is trading at a forward P/E of 7.9xs and forward P/B of 1.4xs for 2018.

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