Analysts from securities companies are optimistic about stock market movements during the last trading week of this year, betting that the cash flow will soon shift to good fundamental large-cap stocks like banking and securities groups.

 

On the Hồ Chí Minh Stock Exchange (HoSE), the market benchmark VN-Index gained 1.38 per cent to end Friday at 1,477.03 points.

 

The index had lost 0.19 per cent last week.

 

An average of 1 billion shares were traded on the southern exchange during each session last week, worth VNĐ32.4 trillion (US$1.4 million).

 

“The VN-Index recovered strongly at the end of last week with the main driving force being the banking group. The market had returned to the bullish trend in all three time frames of short, medium and long term,” said Nguyễn Anh Khoa, Head of Analysis and Investment Consulting Department of Agriseco Securities Company.

 

“In the immediate future, I predict that VN-Index will continue to gradually move towards 1,500 points when entering 2022, especially when the market awaits supportive information ahead such as the Government's economic support package or peak season for the fourth-quarter business results approaching.

 

“However, investors should also note that strong market fluctuations may take place, especially in the pillar groups because the year-end period is approaching and there are often 'rumours' about trading activities of investment funds during this time,” he said.

 

According to MB Securities Joint Stock Company (MBS), during the last session of last week, the market recovered and regained almost all the points lost in the previous session, mostly thanks to the strong growth of banking blue-chips.

 

“MBS believes that the market will maintain its upward momentum this week, with the focus on banking stocks, securities, real estate and steel,” it said.

 

“The liquidity in the past week increased compared to the previous week and continued to be higher than the 20-week average, showing that buyers and sellers are still struggling at the current price range,” Saigon-Hanoi Securities Company (SHS) said.

 

“From a technical point of view, VN-Index has successfully tested two short-term and medium-term support zones around 1,470 points and 1,450 points, respectively,” it said.

 

“Accordingly, the market's uptrend has not ended and the possibility for VN-Index to reach the threshold of 1,500 points in the last trading week of 2021 is possible,” it said.

 

According to SHS, in the 2011-2020 period, there were only two times, in 2012 and 2018, that the VN-Index dropped in the last trading week of the year.

 

Consumer goods stocks gained the most last week thanks to key stocks such as Vinamilk (VNM) up 0.4 per cent, and Masan Group (MSN) up 8.6 per cent.

 

They were followed by banking stocks such as VPBank (VPB) up 1.3 per cent, Tiên Phong Bank (TPB) rising 3.3 per cent and Vietcombank (VCB) gaining 5 per cent.

 

On the other hand, pharmaceutical and medical stocks dropped the most with losers such as Cửu Long Pharmaceutical JSC (DCL) down 12.3 per cent, Hậu Giang Pharmaceutical (DHG) down 4.4 per cent, Imexpharm Corporation (IMP) losing 2.1 per cent, and Traphaco Joint Stock Company (TRA) down 1.1 per cent. VNS