Vietnam’s stock market remains in an uptrend

VN-Index closed with a gain to 1,364.28 points, up 1.75% in the previous week.

In the previous week, Vietnam’s stock market created strong gaining gap from the beginning and widened further until the end as the cash flow spread, so many codes gained strongly. Not only large-cap codes, midcap and penny were also excited so the liquidity exploded. However, in PHS’s view, different from domestic investors’ buying, foreign investors still saw net selling on both exchanges on June 2 with total value of VND 1,045 billion.

On HOSE, VN-Index closed with a gain to 1,364.28 points, up 1.75%. The liquidity created a new record with matched volume of 856.9 million shares (13.4%) for  27,740 billion (14.8%). The market control was stronger with 339 gainers / 75 droppers.

The cash flow returned to blue-chips as VN30 saw much more gainers. Standing out the most was banking shares as MBBank- MBB (6.9%) gained to the limit   along with other strong gainers like Techcombank-TCB (3.8%), Vietinbank-CTG (3.1%) or  BIDV-BID (3.0%). Meanwhile, mid-cap and penny codes also supported with many limit   gainers and many groups were also strongly in green like hydropower, power, construction, sugar, or  fertilizer. On the other side, correcting pressure also appeared on Masan-MSN (-0.7%), FPT-FPT (- 0.4%), Vietnam Airline-HVN (-1.5%), An Phat Holdings-APH (-1.9%).

While foreign investors saw another strong selling on HOSE with net selling value of VND 1,045.1 billion (-13.9%). Being sold the most were Hoa Phat-HPG (-717.4 billion), MBBank-MBB (- 181.0 billion), Vingroup-VIC (-142.8 billion). Meanwhile, Orient Bank-OCB (57.4 billion), SSI Securities-SSI (56.6 billion) and FLC-FLC (42.4 billion) led the buying side.

On HNX, HNX-Index also closed with a strong gain to 329.95 points (2.45%). The liquidity surpassed VND 5 trillion for  the first time with 222.9 million shares (25.6%) for  VND 5,317.9 billion (23.3%).

Similar to HOSE, HNX also saw impressive green on most large-cap codes. In which, gaining the most was banking shares with Saigon Hanoi-SHB (4.2%), Bac A-BAB (3.7%), National Citizen Bank-NVB (2.9%) and Securities shares with VNDIRECTVND (9.9%), Saigon Hanoi-SHS (5.1%) or  MB-MBS (7.5%). On the other side, petro codes with PTSC-PVS (-1.5%), Petrolimex Chemical-PLC (-0.7%), Northern Gas-PVG (- 1.1%) started dropping after previous gains and placed pressure on the index.

Foreign investors lowered the net selling on HNX to 17.6 billion (-67.4%). In which, PTSC-PVS (-33.2 billion), VNDIRECT-VND (-10.1 billion), Vicostone-VCS (-4.9 billion) were sold the most. On the contrary, being bought strongly were Thaiholdings-THD (24.1 billion), Saigon Hanoi BankSHB (12.6 billion), PVI Insurance-PVI (2.7 billion).

PHS said, in technical term, VN-Index saw the 5th gain in a row. The volume increased and stayed above 10 and 20 session average, showing positive cash flow. Not just that, this index is on uptrend, as it stayed above MA5, and MA5, 10, and 20 differentiated positively. Moreover, its indicators supported current uptrend, as MACD was above Signal, maintaining buying sign, and RSI increased to 76, showing strong uptrend, so VN-Index might move to challenge sentimental resistant level of 1,400 points. For  HNX, HNX-Index saw similar situation. It gained and stayed above MA20, showing that uptrend was still there. This index might move to resistant level around 330 points (Fib 38.2, this is the Fib measured by the index’s 5 waves, with first wave being in July 2020).

In general, Vietnam’s stock market is on strong up trend. Therefore, we still recommend that investors might use the shakes to restructure the portfolio on good fundamental codes that can attract strong cash flow, stressed PHS.