The VN-Index ended the week up 37 points (over 3%) to 1,283 points. However, liquidity on the exchanges decreased compared to the previous week. The standout industry group contributing to the market’s recovery this week was oil and gas with the codes PLX (+7.46%), BSR (+5.07%), OIL (+16.53%), and PVB (+5.15%)…
The banking pillars returned stronger with BID (+9.36%), VCB (+3.29%), and LPB (+14.18%). The retail group traded in the green with MWG (+5.13%), DGW (+5.39%), and PET (+2.41%) … Chemical stocks also had an impressive winning week with CSV, which rose for three consecutive sessions.
In addition, the market has also witnessed a certain division among industries. For example, electricity stocks POW and PPC underwent adjustments, and especially TV2 fell more than 10% due to unfavorable information about the Ministry of Industry and Trade terminating the BOT contract for the $3 billion Hau River Thermal Power Project.
Most industries traded positively this week as the VN-Index recovered by 3%.
According to the analysis team of Bao Viet Securities (BVSC), the VN-Index had a positive trading week and recovered all the points lost in the previous week. The index’s movement was supported by very positive macro growth results announced at the end of the previous week, and the exchange rate movement on the black market was more stable. Next week, the business results of listed companies will be the focus of the market. Cash flow is expected to concentrate on large-cap stocks and those with positive Q2 business results.
However, the performance of stock groups will be strongly divided. Investors should focus on groups with positive Q2 business results, such as retail, consumer goods, steel, electricity… or take advantage of market adjustments to accumulate stocks with positive Q4 profit prospects but are currently at attractive prices, such as real estate and exports.
“In addition, next week, the US CPI for June will also be announced. This information may affect the global stock market as well as the domestic market, as it could change the Fed’s interest rate plans in the coming time,” BVSC experts pointed out.
Despite the VN-Index’s strong gains, the analysis team from Saigon-Hanoi Securities (SHS) believes that market liquidity remains low as investors await Q2 business results.
“We believe that the market is positively accumulating and if there are no new negative factors, the VN-Index is expected to break through the resistance area around 1,300 points. Factors such as geopolitical tensions, inflationary pressures, exchange rates, and net foreign selling have cooled down,” SHS said.
Accordingly, short-term investors are advised to maintain a reasonable stock proportion and monitor market developments in the resistance area. Medium and long-term investors should hold their current portfolios, and new positions should be carefully evaluated based on Q2 business results and the outlook for the end of the year of leading companies in each industry.
In case the proportion is below average, investors can consider disbursing to codes that are seeing improved liquidity. The targets are leading stocks, which are expected to have positive Q2 business results and a positive outlook for the end of the year.
From the perspective of VCSC, it is forecasted that in the next week, the VN-Index will continue to maintain its uptrend and retest the 1,300-point mark as the selling pressure of the previous week has been almost completely absorbed. The intraday support level is 1,270 points.
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Bank stocks sold off heavily
Today (2/2), the VN-Index continues to rise, but in a cautious trading atmosphere. It is noteworthy that most banking stocks in the VN30 basket are facing strong selling pressure.
