Vietnamese stock market is forecast to move higher this week, where correction and volatility is expected.

With average price-to-earnings (P/E) and price-to-book (P/B) ratios at a five-year low, bank stocks are among the good options available for investors right now, analysts said.

Local stocks are expected to keep rising this week but their growth would be slower as goods news dries up.

Instead of adopting the age-old “sell in May and go away” strategy, and focusing on months with traditionally stronger market growth, investors now could be more bullish about a stock rally, buoyed by optimism about a gradual reopening of businesses.

Shares are forecast to move sideways this week as investors brace for dreary quarterly earnings reports that could offer more clarity on how badly corporate profits have been damaged by the novel coronavirus pandemic.

Thanks to positive signs in COVID-19 prevention, the VN-Index had a fabulous run since early April.

The stock market fell sharply in March, with all indices dropping steeply, according to the Ho Chi Minh Stock Exchange.

The COVID-19 pandemic has had significant impacts on the stock market, with all indexes on the Ho Chi Minh City Stock Exchange (HOSE) falling sharply in March.

A three-day rally does not mean Vietnamese shares have returned to the growth track as risks are still persistent and there is no clue they have faded away, experts have said.

Trading on the Vietnamese securities market was essential and would not be disrupted under any circumstances during the fight against COVID-19, the State Securities Commission (SSC) said on March 31.

The turbulent moves of foreign selloffs in Vietnam’s stock market over the past few weeks have indicated that riskier assets are still in the midst of a tenuous recovery.

Private-equity bank shares have performed well amid fears of COVID-19 in the last five weeks.

It is expected the Vietnamese stock market will be less volatile in March compared to the previous months.

The benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) took a nosedive to close at 835.49 points on March 9, recording the worst slump since 2002.

Brokerage firms and market experts remain pessimistic about market trading this week as investors run out of supportive information while international stocks continue to be weighed down by the novel coronavirus (COVID-19).

Vietnam’s stock market over the last few days has gradually recovered and rebounded, said Vice Minister of Finance Vu Thi Mai.

Pharmaceutical stocks are experiencing an upsurge as fears of coronavirus have boosted demand for healthcare products and services, lifting demand for shares.

 The Vietnamese stock market has been forecast to fall next week amid fears of coronavirus and a focus on pharmaceutical stocks.

 The dairy industry grew 0.5 per cent in market capitalisation in 2019, much lower than the average growth of 7.7 per cent of the VN-Index, according to a report issued recently by SSI Securities Joint Stock Company (SSI).

Trading liquidity is key to luring foreign capital into the Vietnamese stock market in 2020 when the local equity market is being weighed down by negative ratings and global developments.