Despite weak cash flow and continuous net selling of foreign investors, securities companies still expect VN-Index to increase strongly this week, even reaching 950 points.
The stock market closed the previous trading week with 4 gaining and 1 decreasing sessions to accumulate nearly 14 points. VN-Index closed the week at 924 points and exceeded many analysts’ expectations. However, the market sent two negative signals, the liquidity was decreasing and foreign investors maintained the discharge circuit for 12 consecutive sessions with a total net selling value of over 2,700 billion dong.
According to experts of BSC Securities Company, the cash flow tends to gradually withdraw from small and medium-cap stocks to shrink into a number of large-cap stocks with little increase in the past period. This causes the risk of short-term correction when the VN-Index approaches 925-930 points.
In the short term, the index representing Ho Chi Minh Stock Exchange is still in a rising trend. The market is forecasted to continue with positive movements in the first few sessions of the week, soon surpassing the strong resistance zone 935-945 points.
The uptrend will combine strong corrections and differentiation among stock lines. At the end of the week, the market is believed to be dominated by information about Q3 business results and near the maturity date of October futures contracts.
“The market will still go up to conquer each resistance level from low to high. However, the hallmark of an uptrend is that the back bottom is higher than the previous one, which means there will be short-term profit-taking phases” , the analyst group MB Securities said. At the same time, the group also forecasted that the index will aim at 950 points right this week.
According to experts, the domestic cash flow is still the factor supporting the market to recover step by step. The number of new securities accounts opened in September continued to increase strongly, plus information related to the Long Thanh airport project and attracting foreign investment progressed in a good direction, so it is expected to become the driving force. pushed the VN-Index to go up.
Besides, the positive status of the world financial markets, especially when US stocks have just had a strong week since August, is also an important catalyst.
With a more cautious view, Yuanta Securities Vietnam said that the market may experience many fluctuations this week because the cash flow is weaker and the momentum to increase last week is mainly based on some equity stocks. big chemical. Investors’ sentiment also fluctuates when recognizing that short-term risks increase. This may be the reason why those who have stood out at the early stage of the recovery must consider carefully whether to pour money in the corrections or not.
This analysis group recommends short-term investors to continue holding and limit buying at the current price range. The mid-term trend may be more sustainable, less risky and suitable for opening new long positions and holding a high proportion of stocks in the portfolio.