Experts expect pillar stocks such as banking, retail, etc. to maintain a persistent increase, which is the driving force for VN-Index to go higher.
The stock market this week continued to sublimate with 5 consecutive gaining sessions, helping the VN-Index to accumulate nearly 20 points and approach the threshold of 945 points. Trading volume on the Ho Chi Minh Stock Exchange decreased by more than 5%, but thanks to the sudden transaction in Sabeco shares, the average liquidity per session soared to VND 9,640 billion.
The negative signal is that foreign investors are still extending the chain of net selling for 26 consecutive sessions. The selling pressure to take profit gradually became stronger, most evident through the fact that the last session of the week fell into the state of “green, red skin,” when the number of stocks declined more than increased.
However, according to an expert of MB Securities Company, the market is still very healthy, so this is not too worrying. The pillar stocks such as banking, retail … still maintained their persistent increase, creating excitement for investors and took turns pulling the VN-Index up.
“The uptrend lasting for more than two months is still going on, so the VN-Index is likely to return to the beginning of the year next week”, this expert predicted. In the scenario of continuing to increase, the next expected target of the VN-Index is around 960 points.
With a more cautious view, some other analysts think that the stock market’s rally is too long and many indicators suggest a possibility of a reversal. Short-term risks tend to increase, market breadth becomes more negative when cash flow focuses mainly on a few large-cap stocks.
The activities of restructuring the portfolio of investment funds according to the VN30 and VNDiamond indexes in the last two weeks of October can create volatility in large-cap stocks. In addition, the upcoming third quarter financial statement release season is also one of the main factors causing strong market differentiation.
The expert group of Yuanta Securities Vietnam believes that the nearest support level of the VN-Index is 925 points. Meanwhile, the analysis group of Bao Viet Securities forecast that the index representing Ho Chi Minh Stock Exchange will struggle around 945 points in the first few sessions of the week.
Therefore, investors are recommended to limit chasing buying, temporarily close all short-term positions and consider selling and taking profit to reduce the proportion at this resistance area.