Vietnam's stock market closed last week's trading session in green. However, for the whole week, VN-Index recorded a decrease of 5.51 points (0.44%) and was the fourth consecutive weekly decrease, down to 1,236.6 points.
The market's downward movements have affected many short-term positions and the downward trend since June has been confirmed to continue. Liquidity recorded improvement, showing increased demand, but selling pressure has not decreased. This market situation is partly due to investors' caution, reflected in gradually weakening purchasing power, even during sessions where the index gained well under the support of large-cap stocks last week.
Although many businesses announced positive business results in the second quarter of 2024, short-term cash flow has not rushed into the market and the driving force is not strong enough to maintain the index's upward momentum. This makes investors continue to be cautious and cautious, even lose patience and sell stocks as their accounts gradually erode.
In the immediate future, the support area of 1,200 - 1,220 points is showing a positive reaction, the market recovered in the weekend session, but this has not confirmed the creation of a short-term bottom for the general index. Accordingly, this is the threshold point that needs to be monitored in the coming sessions.
Analysts from HSC Securities Company expressed the opinion that quantitative indicators last week showed a retreat in cash flow in most industry groups, despite the second quarter business results. 2024 growth. The second quarter earnings season is in its final stages, with a positive impact on stock prices, but only for a short time. Besides, before this positive information, cash flow is still cautious, possibly because the expectation of profit growth has been reflected in the price before, leading to the recent shaking phenomenon. However, quantitative indicators are gradually approaching the exhaustion zone, implying the possibility that the market may fluctuate strongly before signaling a short-term bottom.
In general, the short-term correcting trend from June is continuing. Accordingly, in the short term, the priority strategy for risk management activities continues to be emphasized. Medium and long-term investment positions are facing new opportunities. Investors should pay attention to deep corrections to find the most favorable accumulation points for potential stocks thanks to a solid internal foundation, analysts of HSC Securities Company, commented. determined.
Kafi Securities Joint Stock Company also commented that in the context of the market evaluating business results for the second quarter of 2024 in the final stage, the recent market adjustment can be considered a portfolio restructuring activity. of investors. The market dropped, but the macro is still stable and in a recovery trend, so VN-Index will likely move sideways in the 1,180 - 1,260 range in the new week.
According to technical analysis, VN-Index is in a short-term downtrend, but when it retreated to the 1,200 - 1,210 point area, demand was still present and waiting at the support threshold of 1,200 points, helping the index reverse in the trading session. weekend translation. It is expected that the general index will move sideways in the range of 1,200 - 1,250 points in the short term.
