The stock market had a trading session on the first day of October with short-term profit-taking activities when VN-Index approached the resistance of 1,300 points.
Although the market at times surpassed the psychological mark of 1,300 points, the upward momentum could not be maintained due to strong selling pressure, causing the VN-Index to once again fall short of the 1,300-point threshold.
The positive developments of the VN-Index have brought back the cash flow to catch the bottom at low prices, helping liquidity improve in recent sessions.
The market is showing signs of improvement, optimism is rising and the VN-Index regaining key milestones is reinforcing this new uptrend.
In recent sessions, liquidity has remained positive, exceeding VND20 trillion on the HOSE. In addition to the vibrant domestic trading, foreign investors have also disbursed stocks strongly, returning to net buying nearly VND500 billion in the session on October 1.
It can be seen that the VN-Index has tried many times to surpass the 1,300-point threshold but failed. Although these efforts have not created a wave to surpass the peak, they have created a positive trend and are waiting for a phase of synchronization of codes to break through this important resistance level.
The domestic stock market is assessed to have much growth potential. The Vietnamese economy is recording better-than-expected growth, coupled with the Government's active removal of legal obstacles for industries, boosting public investment, as well as efforts to promote the upgrading of the stock market - all of which are positive factors supporting the market in the long term.
In addition, the Fed's interest rate cut from September 2024 by 0.5%/year has reduced pressure on the State Bank in managing exchange rate and interest rate policies. Net selling pressure from foreign investors has also decreased after the US Central Bank's move to lower interest rates.
With such supporting factors, experts still expect that if the general index surpasses the 1,300 point threshold, the synchronous increase of most stocks will return.
Analysts at CSI Securities Company still maintain a positive view on the market with the expectation that the VN-Index will surpass the psychological threshold of 1,300 points to move towards the resistance level of 1,320-1,330 points.
Selling pressure may still increase to bring VN-Index to the support zone of 1,280 points. At this zone, we can boldly open new buying positions as well as increase the proportion of profitable stocks in the portfolio.
AIS Securities Company also believes that there may be some adjustments and slight accumulation in the coming sessions. The strongest support for this market's increase is still the 1,270 point area (around the value of the 20-day MA line).
If this support is not lost, the uptrend is still preserved. In the medium and long term, VN-Index still has a chance to surpass the 1,300 point threshold. Further, it will be the 1,350 point zone from now until the end of 2024.
However, with the market still facing resistance every time it conquers the 1,300-point threshold, many experts also give cautious recommendations.
Experts from VCBS Securities Company recommend that short-term investors consider partial profit-taking for stocks that have reached their targets, encountered strong resistance, and shown signs of weakening.
The market is at a strong resistance zone, so investors should closely follow developments during the trading session to be able to act promptly to preserve results.
In addition, investors can also consider disbursing for short-term surfing purposes during market fluctuations, with priority given to stocks and industry groups with good third-quarter business results expectations as well as having established a stable horizontal accumulation base. Some such industry groups could be steel, public investment, and seaport transportation.
