Vietnam's southern bourse up slightly amid hopes on COVID-19 vaccines

August 17, 2020

VN-Index, the benchmark index of the Ho Chi Minh City Stock Exchange, inched up from last week's closure of 841.46 points to close at 850.74 points on Friday.

The index posted three ups and two downs this week. It started Monday on a positive note, cutting early gains of gaining 1.74 points, or 0.21 percent, as profit taking pressure increased strongly when VN-Index was approaching 850 points.

Shares failed to maintain their rally on Tuesday with the market experiencing strong volatility with big variation in large-caps' prices.

Vietnamese shares advanced on Wednesday as increasing oil prices helped boost petroleum stocks, and extended gains on Thursday on upbeat global market sentiment amid hopes of a potential coronavirus vaccine supply deal.

An average of over 278.3 million shares were traded per day on the southern bourse, down 0.5 percent against last week. Trading value totaled 23.2 trillion Vietnamese dong (over 1 billion U.S. dollars), up 22.6 percent.

Foreign investors remained net sellers of 743 billion Vietnamese dong (32.3 million U.S. dollars), compared to a net selling of 152 billion Vietnamese dong (6.6 million U.S. dollars) last week.

The market is forecast to extend the current uptrend and head toward resistance 876-883 points in the short term with wide divergence among stocks, according to local securities experts.

Besides, information related to the production of vaccines against the COVID-19 pandemic is expected to support the market in the short term.

Stock exposure should be maintained at 50-65 percent of the portfolio, said the experts, noting that investors may consider selling part of the short-term positions at the aforementioned resistances and consider opening short buying positions and covering previously sold positions at market corrections in several sessions.

VN-Index closed at 850.74 points on Friday, down 4.31 points, or 0.5 percent, against the previous trading day, with some 304.7 million shares worth nearly 5.2 trillion Vietnamese dong (224.5 million U.S. dollars) changed hands on the southern bourse.

Specifically, foreign investors bought 12.3 million shares totaling 318 billion Vietnamese dong (13.8 million U.S. dollars), and sold 26.6 million shares totaling 525 billion Vietnamese dong (22.8 million U.S. dollars).