During the trading week from September 23 to 27, 2024, the VN-Index had positive developments when it reached the 1,300 point threshold after 4 consecutive increasing sessions. The index decreased in the last session of the week due to increased profit-taking pressure.
Along with the index's recovery is a strong improvement in liquidity, especially in the last 3 sessions of the week, showing the return of investor confidence.
Accordingly, the general index's movement is on its way to conquer the resistance level of 1,300 points.
During the last trading session of the week, selling pressure appeared when the index reached this threshold, but during the upward process, the market could not avoid fluctuations and adjustments. These were breaks for the market to gain momentum to continue moving forward.
Banking stocks had the most outstanding performance and were the main driving force behind the market's growth last week. Thanks to the improvement in market sentiment when the leading industry emerged, demand expanded to other industries such as securities, construction materials (steel), and real estate.
Support for the market and domestic investor sentiment is also noted from the improvement in foreign cash flow over the past two weeks.
If this trend is maintained along with high liquidity and positive sentiment in all sectors as at present, this is considered a plus point for the VN-Index to have new decisive breakthroughs at the 1,300 point threshold.
With the VN-Index struggling at the historical resistance level of 1,300 points, experts do not rule out the possibility that the index will have a correction to attract more cash flow waiting in the 1,270 - 1,280 point area.
If corrections occur, they will be an opportunity for investors to increase their stock holdings to welcome the upcoming third quarter business results.
Analysts from HSC Securities Company commented that the strong recovery of cash flow along with the consensus of large-cap groups helps the current uptrend to be more reliable and sustainable.
VN-Index approached the 1,300 point threshold. Although there were fluctuations in the last session of the week, it did not affect the trend and was considered a healthy adjustment to accumulate and gain momentum for a breakthrough.
HSC experts believe that investors can buy new stocks and accumulate stocks during market fluctuations and corrections, especially stocks that maintain a positive trend and continue to grow in the third quarter.
Analysts from Kafi Securities Company also hold the view that as the VN-Index gradually improves due to brighter domestic and international macroeconomic factors, investors should take advantage of the opportunity to increase their stock holdings, with the expectation that the index will continue its upward trend.
Potential stocks are stocks with positive business results in the second quarter and have maintained positive prospects so far. Along with that are stocks that receive attention from cash flow such as the securities group, with the expectation of benefiting from the market upgrade process; the banking group thanks to credit growth and favorable legal policies; the real estate group with the opportunity to recover from reforms in the legal corridor.
DSC Securities Company also assessed that with the cash flow gradually returning and the leadership of banking stocks, VN-Index is expected to continue to accumulate and adjust around the 1,280 - 1,290 point range in the first week of October before accelerating strongly in the last 3 sessions of the week.
The uptrend may face some challenges at the resistance level of 1,300-1,305 points, but if liquidity remains good and foreign investors continue to net buy, the market will have a chance to break out, aiming for a new peak in October, as well as in the fourth quarter of 2024.
