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Shares to correct on worries of virus surge

HÀ NỘI — Vietnamese shares may continue to fall this week as a spike in fresh coronavirus cases fuelled concerns that the path to economic recovery could be hindered.

The benchmark VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) lost 0. 三 四 per cent to end Friday at  七 九 八. 三 九 points.

It had lost a total of  三. 七 per cent last week.

An average of  三 一0. 四 million shares were traded on the HoSE during each session last week, worth VNĐ 四. 九 trillion.

On the Hà Nội Stock Exchange, the HNX-Index slumped 0. 五 五 per cent to end Friday at  一0 七. 五 一 points.

The northern market index had declined  一. 七 per cent last week.

An average of  四 八. 七 million shares were traded on the HNX during each session last week, worth VNĐ 四 四 四 billion.

Two women infected with COVID- 一 九 were confirmed dead Sunday afternoon, bringing Việt Nam's tally of COVID- 一 九 casualties to five.

Both patients suffering from underlying health conditions were diagnosed with COVID- 一 九 on July  三 一.

Việt Nam has recorded  五 九0 cases so far,  二 一 二 being active cases. Over  九 四,000 are in quarantine.

According to Lê Anh Tùng, Market Macro Strategist at KB Securities Vietnam, investors are quite sensitive to the COVID- 一 九 movements.

Signs of a resurgence in coronavirus cases in Việt Nam unnerved investors who were hoping for a swift economic recovery from the crisis, he said.

“I am afraid that the main trend of the market in August is going down. The rapid spread of COVID- 一 九 coupled with the complicated nature of the infection cases in major hospitals, makes the pandemic more complex than it was the first time. Therefore, the risks of another social distancing order may happen and the stock market will witness an additional deep decline,” he said.

But the market may rebound afterwards as investors still pinned hopes on drastic action of the Government in the fight against COVID- 一 九, having their faith in the stock market again, Tùng said.

“I think that the market may move sideways next week and the VN-Index is forecast to fluctuate in the price range of  七 四 五- 八00 points,” said Nguyễn Thế Minh, director of Analysis Division at Yuanta Vietnam Securities Co.

“As the short-term trend of the market is still down, the appropriate strategy for investors at present is to sell off and reduce their stock proportion. However, the cash flow still shows signs of different orientation and investors still have opportunities to seek profits in each specific industry group,” he said.

According to Trần Xuân Bách, a stock analyst at Bảo Việt Securities Co, the VN-Index is forecast to continually oscillate between resistance  八 一0- 八 二0 points and support  七 八0 points next week.

“Q 二 business result reporting season is gradually losing its impact on the market movement. The market will lack supporting information during the early weeks of August, therefore, the VN-Index’s movement will be driven mainly by news related to the COVID- 一 九 pandemic,” Bách said.

“Stock exposure should be maintained at below  二 五 per cent of the portfolio. Investors should only open buying positions at low proportion at support zone of  七 七 五- 七 八 五 points, prioritising portfolio-existing positions,” Bách said.

With the market going down last week, almost all major sectors declined.

Consumer services stocks such as Vietnam Airlines Group (HVN) slumped  一0. 九 per cent, Vietjet (VJC) lost  九 per cent and SCSC Cargo Service Corporation (SCS) was down  四. 八 per cent.

Oil and gas stocks also decreased, PetroViet Nam Coating JSC (PVB) decreasing  九. 一 per cent, PetroVietnam Technical Services Corporation (PVS) falling  九. 三 per cent, Bình Sơn Refining and Petrochemical Company Limited (BSR) losing  七. 八 per cent and PetroVietnam Oil Corporation (OIL) moving down  五. 五 per cent.

Banking stocks also saw a steep fall with Techcombank (TCB) down  六. 九 per cent, Vietcombank (VCB) losing  五. 七 per cent, HDBank (HDB) falling  五. 三 per cent, Military Bank (MBB) and VPBank (VPB) both down  四. 七 per cent. — VNS