VN-Index could rise to 985 points in July

By Hung Le   July 7, 2019 | 10:50 pm PT
VN-Index could rise to 985 points in July
People walk past the stock exchange centre in Hanoi, Vietnam. Photo by Reuters/Kham.
Vietnam’s benchmark VN-Index could perform better this month, but liquidity will remain low, Viet Dragon Securities says.

The VN-Index, which represents around 90 percent of the market cap, is expected to fluctuate within a range of 940-985 points, slightly better than in June. The VN-Index ranged between 943-962 points in June, preforming worse than in the previous month but pulling out of the downtrend by the end of the month.  

Viet Dragon Securities said as companies release their second quarter earnings reports, there would be short-term opportunities for investors to make profits. The opportunities would arise in leading sectors such as banking and industries such as textiles and wooden furniture that have benefited from the U.S.-China trade war. 

But despite there being a more positive outlook than for June, the market is still not attractive enough for cash flows to become strong, the firm said. Corporate bonds, real estate and gold look more attractive than stocks. 

Gold prices have jumped 4.9 percent in just 15 days since the U.S. Federal Reserve on June 20 signaled possible rate cuts of as much as half a percentage point over the remainder of this year.

Corporate bonds offer high interest rates, some of above 12 percent, and the real estate market remains steady, it added. 

Last Friday session the VN-Index closed 2.3 points (0.24 percent) up at 975.34 points, the highest in four weeks. 

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