Brokerages expect another good week for VN-Index, 1,400 in sight

By Phuong Dong   June 6, 2021 | 09:32 pm PT
Brokerages expect another good week for VN-Index, 1,400 in sight
An investor at a securities brokerage in Ho Chi Minh City. Photo by VnExpress/Quynh Tran.
Analysts expect Vietnam’s benchmark VN-Index to hit 1,400 points this week as cash continues to pour into the stock market.

Director of analysis at HCMC brokerage, who does not want to reveal the name, said the index’s upward trend would continue this week, with the short-term peak being 1,400 points, with banks, securities firms, oil and gas, and steel stocks, the pillars of the market, driving it up.

The market is in the middle of its longest bull run in the last 20 years, but technical indicators show overbought signs, he said.

Following five straight days of gain last week the VN-Index closed at 1,374.05 last Friday, up 4.06 percent from a week earlier.

In the first half of this year it surged 34.51 percent, the highest gain by any market in the world.

Yuanta Vietnam said investors remain optimistic about the stock market and the rising trend would continue in the short run, but the index is expected to fluctuate at around 1,364 points at the start of the week, with the biggest concern being valuations since prices, especially of bank and steel stocks, are no longer cheap.

It said investors should pay attention to individual stocks and buy with caution, avoiding high leverage.

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