HANOI: The Vietnam stock market registered a weekly gain despite strong fluctuations last week.
The market is expected to receive further support from a clearer economic recovery outlook and anticipated positive business results in the first quarter of 2024.
The domestic capital flows remained strong, driven by low-interest rates and expectations of a market upgrade.
This week, the benchmark index is expected to be affected by the US Federal Reserve (Fed) policy meeting, according to experts.
The VN-Index on the main exchange, the Ho Chi Minh Stock Exchange, began last week with a correction to around the 1,235 point-level, followed by a strong recovery, and surpassed the highest level set in 2023.
However, in the final two sessions of the week, the index faced a rising sell-off force at the strong resistance level of 1,280 points, leading to significant volatility as it retested the support zone at 1,255 points. The VN-Index closed the week at 1,263.78 points.
Similarly, the HNX-Index on the Hanoi Stock Exchange (HNX) last traded at 239.54 points.
For the week, the VN-Index still gained 1.32% while the HNX-Index rose 1.36%.
There was an improvement in trading liquidity as the market recorded a trading value of more than 30.1 trillion dong per session, up 15.7% on the previous week.
Foreign investors resumed heavy net selling. The activities were attributed to the restructuring in the three largest foreign exchange-traded funds (ETFs) on the market, including VNM ETF, FTSE Vietnam ETF and Fubon ETF. They net sold a value of over 2.8 trillion dong.
VNDirect Securities Corp said that the stock market was gearing up for an important trading week as the Fed is set to hold a monetary policy meeting on today and tomorrow.
During the meeting, the VN-Index might retest the resistance zone around 1,280 points.
Should the Fed decide to keep the current interest rate unchanged in the upcoming meeting, the event’s significance would not wane as all eyes would be on the Fed Chairman’s speech.
Market expectations were centred around fresh insights into the Fed’s future action, particularly regarding the expected timing and extent of rate reductions for the year. — Viet Nam News/ANN
