The VN-Index recorded an increase last week when market sentiment was supported by information related to domestic macroeconomic data for the third quarter of 2024 and the overall positive movement on the inter-market side.
Although foreign investors have slowed down their buying momentum, the VN-Index is still able to increase thanks to the support from stocks in the VN30 such as FPT, VHM, MSN...
Liquidity last week has cooled down significantly compared to the previous week, especially in the last session of the week when the total trading value only reached about 13,200 billion VND.
The reason is that most of the industry groups leading the increase last week such as banking and securities have been moving sideways with low liquidity.Without a leading industry group, the VN-Index has not been able to approach the 1,300-point resistance zone again, the increase in points this week mostly comes from individual stocks in the VN30.
Divergence is what investors see most clearly, for example in the same steel industry group.According to experts, the biggest influencing factor this week is the derivatives maturity event that will take place on October 17, which will affect transactions in the underlying market, especially on the buying side.
This is clearly demonstrated through the decline in liquidity last week, showing that the market's recovery is greatly supported when selling pressure is reduced and only a slight demand can push prices up.
According to analysts at DSC Securities Company, last week, Vietnam's economy recorded many positive signs, with GDP growth in the third quarter of 2024 reaching 7.4%.
GDP growth in the first nine months of this year reached 6.82%, with all three main sectors recovering well. At the same time, the State Bank has injected more than VND200,000 billion into the economy, helping credit growth reach 9%, expected to reach the target of 15% for the whole year.
Along with that is good news that FTSE Russell continues to keep Vietnam on the watch list for upgrading to emerging market status.
"We believe that the market will continue to accumulate in the first two sessions of this week, before suddenly accelerating at the end of the week, conquering the 1,300 point mark thanks to the return of leading sectors such as banking, securities, steel...", experts from DSC Securities Company stated their opinion.
HSC Securities Company also forecasted that the VN-Index will move below the 1,300 point barrier this week.However, HSC experts maintain their view on an overall positive trend of the market.
The recovery and accumulation state with the higher bottom pattern is maintained. As a result, the basis and expectation of the index surpassing the resistance level of 1,300 points are being consolidated. With the positive movement of money flow, the market's upward trend will be more sustainable and short-term trading opportunities remain positive.
"In general, the market has recorded a recovery after giving a signal that the VN-Index successfully maintained the short-term support level of 1,270 points.
Accordingly, the overall market trend is positive.The fluctuations still create opportunities, especially the third quarter 2024 business results announcement season is entering a vibrant period and this is also the basis for short-term transactions to restructure investment portfolios, as well as take advantage of the fluctuations to accumulate new positions," HSC experts commented.
