The holidays are usually not the best time for stocks, but the VN-Index closed up more than 40 points last week.
Usually, investors tend to take profits to protect their profits from long holidays. However, the past week has taken a turn in the opposite direction, with greenery spreading across the electrical panel.
VN-Index fluctuated and fell in the first session of the week due to cautious investor sentiment after a strong fall. But demand for bottom fishing has consistently resurfaced and increased significantly in subsequent sessions, helping the market to consistently have positive recovery sessions. Securities and chemical stocks attracted strong demand, with many stocks surpassing the old peak zone. In addition, the rise in stocks of many large caps in the VN30 group also created a positive environment, forcing the market to extend the recovery cycle.
In the last session of the week, trading activity from foreign investors was also a bright spot in the market as they were net buyers throughout the session with over VND540 billion in volume, focusing on buying HPG, VRE and GMD. As a result of the week, VN-Index closed at 1224, having increased by more than 40 points (3.44%) compared to the previous week.
According to the Saigon-Hanoi Securities Company (SHS), in the short term this rally could head towards the old high around 1250 before creating a new accumulation base ahead of the strong resistance at 1300.
In the medium term, a group of analysts believe that the uptrend of the market is not broken. The recent strong correction did not break the 1150 mark, so the market accumulated and created a short-term uptrend before entering a new accumulation area. A strong correction is still needed for the market to get rid of the strong 1300 resistance level and in a positive case the VN-Index could still explode above 1300 if the next accumulation interval is good and tight enough.
“However, it is too early to predict that in the near future the market will recover in the short term and then it will be necessary to form a new accumulation zone for the accumulation of domestic resources before breaking through strong resistance,” the SHS report says. . .
In the short term, the market is in a recovery phase after the correction, but the market is facing a new phase of accumulation. The analyst group believes that there is a risk of turmoil when the VN-Index approaches the 1250 resistance level. SHS believes that for medium-term and long-term investors, investors can increase the payout share in the current area, the medium-term and long-term investment target should be directed to the industry’s leading stocks, stocks accumulate and are not subject to deep adjustment. .
With the same sentiment, the Vietcombank Securities Company (VCBS) analyst group is also taking a cautious view, recommending that investors continue to narrow their portfolios and only focus on listing stocks that are performing similarly or better than the VN-Index, attracting good investment. demand and signaling the overcoming of the peak. Some industry groups may be interested, such as securities, real estate, retail.
Min Song