Back to trading after the Lunar New Year holiday, the VN-Index continuously increased, exceeding the 1,200 point mark and maintaining its upward momentum. On February 15, the VN-Index increased by 0.33% after a late session profit-taking, closing at 1,202.5 points with positive liquidity. The increase was led by the banking group, spreading to stocks in the VN30 basket. The VN-Index this week was driven by blue-chip stocks such as VIC (+3.7%), GVR (+5.1%), VNM (+3.6%), and TCB (+3.2%).
Good liquidity, the trading value of the three exchanges increased strongly by 20.2% compared to the previous week, thanks to positive sentiment after Tet. On average, liquidity reached VND 20,637 billion per session. However, foreign trading remained a negative point, with a continued net selling of VND 768 billion on all three exchanges.
The stock market started the new year with 2 exciting trading sessions.
Mr. Dinh Quang Hinh, an expert from VNDirect Securities Company, said that investor capital had returned to the stock market soon after the Tet holiday, helping the VN-Index breakthrough the psychological level of 1,200 points. The market breadth is also more positive when many industries alternate between rising and maintaining the market trend, instead of focusing only on the banking group as before the holiday.
The sentiment of domestic investors is currently quite upbeat thanks to positive macroeconomic support information, especially the Purchasing Managers’ Index (PMI), import-export, and FDI data in January, as well as the business results of listed companies in the fourth quarter of 2023 showing clear recovery.
“This reinforces the market sentiment towards the shareholder meeting season in 2024 and the first-quarter business results with brighter colors. Combining the above factors, there is no sign that can likely “reverse” the current upward trend of the market. Investors can continue to hold shares as market indicators still support the ongoing upward trend,” analyzed Mr. Hinh.
Regarding the market’s performance next week, Mr. Hinh predicted that the VN-Index could aim for the old peak around 1,240 points (+/- 10). This is a strong resistance zone and has enough strength to challenge the market’s upward trend.
Experts from Viet Dragon Securities Company (CSI) also believe that the upward trend shows no signs of stopping, and even the market is still showing signs of possible further increases. The resistance level around 1,210 points has been retested by the VN-Index, with profit-taking pressure occurring, but buying pressure is still very strong. However, CSI still recommends a selling strategy, realizing profits at the current time and limiting the chasing of increased positions.
According to SHS, the VN-Index has surpassed the psychological resistance level of 1,200 points.
The analysis team of Saigon – Hanoi Securities Company (SHS) believes that the market trend is still positive, although there may be fluctuations, and the target of the short-term upward trend is towards the 1,250 point level. Currently, the VN-Index has exceeded 1,200 points, but in the context of a positive sentiment, the market may experience fluctuations in the coming time. SHS recommends short-term investors not to chase after highs.
For medium and long-term investors, the market is gradually consolidating and forming an accumulation platform, but this process will take time. If they want to invest more, medium-term investors should wait for market correction phases.
