Last week, the market approached the strong resistance of 1,300 points at times, but selling pressure increased sharply when many pillar stocks recorded relatively good profits after a short period of time, causing the VN-Index to fail to conquer this resistance and end the previous two consecutive weeks of increase. Foreign investors had a third consecutive week of net buying, but it was not enough to boost the market's growth.
Investor sentiment may be partly influenced by cross-market factors, with geopolitical tensions in the Middle East and cash flows gradually becoming more cautious, as evidenced by record low liquidity in the last session of the week.
In addition, the correction of large-cap stocks, especially banks, after more than 2 weeks of strong growth is also the reason why VN-Index is "stumbling" and correcting. Currently, the "danger" warning has not appeared and strong selling activities to escape the market have not been triggered. Accordingly, the current movement is considered a technical correction with short-term profit-taking activities appearing when facing pressure at the resistance zone of 1,300 points.
Analysts at HSC Securities Company analyzed that when selling pressure is reduced, this creates an opportunity for an early balance point to be established. In a positive scenario, the support level around 1,260 - 1,270 points will be maintained, combined with positive improvement in active demand, along with the return of consensus from large-cap stocks, which will help the general index soon return to an upward trend.
"The downward trend in the past week has not affected the positive trend of the market in the short term. Accordingly, the current correction is a necessary movement to welcome more cash flow before breaking through the psychological resistance of 1,300 points again. In the short term, the market correction is inevitable, but in the medium and long term, we are still optimistic about the market outlook. Therefore, in the context of the current correction, new buying positions are becoming more favorable with more attractive discount prices," said experts from HSC Securities Company.
DSC Securities Company also commented that, like previous times, the lack of a strong leading group and the lack of consensus from industry groups prevented the index from breaking out. With the cash flow weakening and showing signs of gradually withdrawing from large industry groups, the market may need to accumulate around the 1,260 - 1,270 point range before returning to the uptrend thanks to the recovery of industry groups with enough leadership such as real estate or banking.
Commenting on the influential stock groups in the coming time, Dr. Nguyen Duy Phuong, Investment Director of DG Capital, said that after the period of focusing on provisioning in the first and second quarters, the banking stock group is expected to have a better profit growth point in the last two quarters of 2024. This will continue to be the most stable and consistent leading industry group for the market. The real estate and supporting industry stocks may still face many difficulties, because the recovery of the real estate market has not yet reflected in the majority of projects of enterprises on the stock exchange. Business results may improve, but there will be a large differentiation.
