Vietnam stocks recover as analysts flag near-term risks
Vietnam's stock market extended its recovery for a second straight week, supported by strong second-quarter earnings that have brought valuations back to more attractive levels.
Vietnam's stock market has bounced back for a second week, bolstered by stronger-than-expected second-quarter earnings. Analysts, however, caution investors to temper their enthusiasm, urging them to reduce equity exposure and avoid chasing market rallies. The VN-Index closed at 1,768.06 points, marking a 1.86 percent increase from the previous week.
Despite the two-week recovery, securities firms remain cautious about the benchmark's prospects. Vietcap notes that the VN-Index has not yet broken above 1,770 points, a level near its 200-day moving average, suggesting selling pressure remains significant. Pinetree Securities expects the VN-Index to consolidate within a 1,745-1,800-point range as the market enters an information void following the earnings season.
Positive factors, such as renewed foreign investment in blue-chip stocks, may lose momentum, while foreign selling and a correction in Vingroup-related stocks could add pressure. Investors are advised to wait for the VN-Index to test the 1,720-point support level before making new investments. Analysts also recommend focusing on companies with solid fundamentals and positive earnings growth prospects.
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