The selling pressure in the blue-chip stock group caused the stock market to plummet in the last trading session of the week, with a 15-point decrease to 1,212 points. It is noteworthy that market liquidity in the last trading session also increased dramatically with a trading value on HOSE exchange reaching over 30 trillion VND, setting the highest level since the end of September 2023. So, has VN-Index reached its peak and which stock groups are noteworthy after the market correction?
Some stocks may see an early rebound ahead of VN-Index
Mr. Nguyen Anh Khoa – Head of Securities Analysis and Research at Agriseco Securities believes that in the past 2 weeks, VN-Index has recorded a relatively positive point increase thanks to the leadership of sectors such as banking, retail, industrial zones,… in an alternating manner.
However, in terms of technical factors, the relatively steep point increase combined with the absence of any significant correction will cause the index to have relatively strong reactions as it approaches the mid-term peak range of 1,240-1,250. In addition, profit-taking pressure from institutional investors as well as increased net selling by foreign investors in recent sessions are also factors that have a big impact on the market’s upward trend.
In addition, the market has seen many upward sessions due to the push of blue-chip stocks, large-cap stocks while the market breadth has been biased towards the selling side with more declining stocks than gaining ones. Mr. Khoa believes that when the index suddenly reverses its downward trend in the last trading session along with a dramatic increase in liquidity, these are signs of a typical distribution phase.
The fact that the index formed a negative candlestick pattern, completely negating the previous upward sessions, shows that the correction pressure will continue in the coming week. However, bottom-fishing demand is still relatively positive and the long-term upward trend of the index is still maintained. This leaves room for technical rebounds to occur next week around the near support level of 1,200 points and deeper at 1,180 (+-5).
In the coming week, the expert believes that investors can allocate funds with a low proportion as the index has returned to the aforementioned notable support levels. Some stock groups are expected to see an early rebound compared to the overall market including export-oriented sectors (textiles, seafood,…), defensive stocks (electricity, water),….
The market is still in the Uptrend phase
With a positive perspective, Mr. Ngo Minh Duc, Founder of LCTV Financial Investment Joint Stock Company, believes that the long-term market still has many bright spots thanks to stable macroeconomic support, continued decline in deposit interest rates, low bond yields and the central bank maintaining loose monetary policy.
With that potential, VN-Index can continue to be an attractive investment channel for capital flows from other channels such as savings, gold,… which will increase market liquidity. In fact, recently “billion USD” trading sessions have continuously occurred and the expert believes that liquidity will continue to reach even higher levels in the near future.
With the view of a sustained market uptrend, the expert predicts that VN-Index will reach 1,320-1,380 points in 2024. However, in the long-term upward trend, there will still be intermittent correction phases and the recent correction phase will not linger. The market may regain its upward momentum immediately in the coming week as developments from stock markets in countries like the United States, Japan,… show many positive signals.
According to experts, in a long-term Uptrend, short-term correction phases are always opportunities for external investors to participate. In the coming week, the focus of the market may still be on the banking sector and some real estate stocks that have been consolidating sideways over the past period.
