After a week of strong trading, the stock market has quickly returned to an upward trajectory with green still the main color on the electronic board.
The high demand helped the VN-Index increase sharply towards the end of the session on September 15, thereby closing at 1,684.9 points, equivalent to an increase of 17.64 points (+1.06%). The value of matched orders on HoSE reached more than VND34,250 billion. Regarding foreign transactions, foreign investors continued to net sell nearly VND 1,402 billion in today's session.
Liquidity in the whole market remains low, reflecting investors' reserved sentiment, and at the same time shows that fluctuations can recur. However, the positive reaction of pillar stocks when the index retreated to the support zone, showing that the prospect of recovery to the psychological mark of 1,700 points this week is still feasible.
The market is predicted by investors to gradually form a zone of 1,600 - 1,700 points. In a positive scenario, the VN-Index may challenge the upper limit at 1,700 points. However, the decisive factor lies in the developments of each stock: the market is only really strong when many industry groups regain their upward momentum and break through to new peaks.
On the contrary, if only relying on some large-cap stocks to pull the index while the majority of stocks are trading weakly, the VN-Index can signal to a short-term distribution zone, needing more accumulation time before entering a stronger uptrend.
Foreign investors are net sellers, domestic cash flow is cautious, making it difficult for the market to break out. However, accelerated credit along with the policy of maintaining low interest rates and the market approaching the upgrading target are expected to support the medium-term trend.
Experts from Pinetree Securities Company believe that the VN-Index will continue to have positive developments at the beginning of the week, aiming to test the old peak around 1,700 points. However, it is uncertain to surpass the peak as cash flow is not really decisive: money mainly enters midcap but has not returned to the pillar, has not formed a clear leadership group, so the possibility of a strong breakthrough is not high.
A suitable scenario is that the index checks the old peak and then has a slight correction, before cash flow returns to large-cap stocks to create momentum for a more sustainable increase.
Regarding investment strategy, investors holding stocks are recommended to continue holding and observing developments around the peak of 1,700 points to consider taking profits or holding more.
For investors who do not have a position, experts recommend being patient and limit opening new purchases at the beginning of the week because the risk of the index checking the old peak and then turning around is quite high. Even in cases where the VN-Index surpasses the peak, FOMO should not chase, instead, wait for a correction to re-evaluate the peak area before opening new purchases to minimize risks.
