HANOI, Vietnam – Shares from the Vietnam share store is called to regain over the final of this worldwide share store to the Christmas holiday break Wednesday as foreign shareholders ‘ selling pressure starts to lessen.
International investors have been the biggest gainers in the store for most of the trading sessions in December. But with the Christmas break fairly on sight, according to a Bao Viet Securities report, the ease in selling pressure could boost the VN-Index in Vietnam to develop to around the range of 958 to 961 points during the early trading sessions this week.
The benchmark index in Vietnam locked Friday’s session at 956.41 points, marking a 0.44% advance. The gains were mainly boosted by several blue-chip stocks going towards the green mark in the chart, despite a foreign net benefit at $14.66 million (VND 340 billion).
According to the equal report from the BVSC, the near psychological threshold for the index is at 960 points, and if it continues to surge over that threshold, the index is looking towards an excellent recovery phase. After that, the VN-Index could develop to as a lot of as 980 to 985 points near-term, the report said.
In the last two months, the VN-Index has been marginally down. From its previous high at 1015.59 points, it has plunged to as deep as 956.41 points. However, the index’s downward momentum has significantly slowed in recent weeks. In the last two trading weeks, it has only lost 10 points, nearing the support level at 950 points but has never dipped well beneath that mark.
The end of the year is also deemed as a peak season when ETFs are starting to restructure their year-end portfolios and a time when contract futures mature, and analysts say that it has left the store looking more optimistic than ever.
For example, the liquidity of the index at the end of last week’s session has reached $146.13 million (VND 3.39 trillion), marking its highest value in the past two weeks. However, the number has remained well beneath the averages from the previous months, which suggests that store players are remaining cautious, and a breakthrough would be difficult for the store.
Meanwhile, once this week ends, the share store in Vietnam will only have the last two sessions for this year. Analysts have outlined in their reports the key forces that will drive Vietnam’s share store going forward, which includes the easing tension in the US-China trade negotiations, Public Investment Law amendments scheduled for next year, and the steadily thriving macroeconomic indicators of Vietnam.