Securities firms expect a continued correction on both stock exchanges early this week after the previous week closed with two falling sessions while foreign trading sharply declined.
Last Friday, sellers looked determined not to let the indices emerge as victors. As soon as the market saw some signs of rebound, offer orders escalated, throwing the indices back into the red territory.
Viet Capital Securities Company (VCSC) said that last week saw ups and downs. In the early part of the week, the performance on both indices was strong but profit taking pressure started to take off the gains starting on Wednesday.
Concerning supporting news, only a few companies started to release the fourth quarter of 2012’s results. “Naturally, we think there will be winners and losers within each sector, but from the sector-wide perspective, our expectations for fourth quarter results do look diverged,” it said.
Over the week, the VN-Index lost 1.8% from 462.69 to 454.16 while the HNX-Index advanced 2.5% from 60.53 to 62.05. Turnover declined on the southern bourse by a staggering 56% in volume and a significant 42% in value. On the northern exchange , the decline was milder, shrinking just 4% in volume and 8% in value.
VCSC said that the 450 and 62 marks proved to be strong support levels for the VN-Index and HNX-Index but the broker was doubtful such levels could be sustained over this week.
“We believe the strong support levels for the VN-Index and HNX-Index are 430 and 58.5 respectively. We’ll need more confirmation in the upcoming sessions but that should give us a rough re-entry point,” VCSC added.
HCMC Securities Corp. said that last Friday’s market pattern was very interesting in that early heavy profit taking was met by renewed buying in the afternoon.
The two indices gained in early trade thanks to several blue-chips, namely BVH, VCB, HAG, MSN on the southern bourse and SCR, PVX, VCG on the northern bourse. In fact, those tickers, except for VCG, proved to be strong support of the indices until the very end.
Friday trading sessions often play host to deep market corrections and the fact that last Friday in contrast saw a rather mild pullback at the close suggests that underlying investor sentiment remains quite bullish. This enabled both exchanges to close well off the daily trading lows. Even so the period of consolidation may continue into the early part of next week before the market chooses to make its next move, the broker said.
The Saigon Times Daily