After 4 consecutive sessions of maintaining green, the VN-Index had a slight correction yesterday, October 14. According to experts, after a series of consecutive positive sessions, this correction is completely normal and market liquidity is quite active with the main attraction still being banking and securities stocks, showing that investors' confidence and hope are still high.
Cash flow is currently mainly focused on the large-cap VN30 group, while small and mid-cap stocks still need time to accumulate. This increases the possibility that the VN-Index will maintain its fluctuating trend within the range of 1,250 - 1,300 points as investors are cautious ahead of the Q3/2024 business results reports of listed companies to be announced next week.
Currently, the stock market has been stagnant for quite a while as supporting information is not strong enough, while businesses have not revealed much about their latest quarterly business results. In addition to the third quarter business results, investors expect information about the fourth quarter prospects of businesses, but whether that will be the main driving force of the market in the coming time or not is still an open question.
In the immediate future, if the business results of many enterprises in the third quarter of 2024 are positive, it could be a factor leading the market to increase points. Some sectors worth paying attention to are banking, real estate, and consumer goods. In particular, the retail group in the first half of the year witnessed an impressive recovery in terms of profits, and the market may be expecting this achievement to be maintained.
However, the market is likely to have a clear differentiation and the group of stocks with outstanding results or long-term growth potential will attract cash flow. Differentiation between stocks in each industry group may also occur, when the current economic recovery context is the basis for strong businesses to accelerate compared to competitors in the same industry.
Analysts from SHS Securities Company believe that in the short term, the VN-Index is growing above the support zone around 1,280 points, equivalent to the average price of 20 sessions. The index is maintaining in the 1,280-1,300 point range and is under pressure to correct the support zone of 1,280 points.
In the positive case, if the short-term uptrend is maintained, it is possible to expect a return to the resistance of 1,300 points. However, this is a very strong resistance zone. Whether the index can overcome this strong resistance in the near future or not depends on the consensus of growth among industry groups.
According to analysis by experts from Kafi Securities Company, the State Bank is likely to maintain a loose monetary policy to support economic growth, which will help facilitate cash flow into the stock market. In the context of the Vietnamese stock market moving closer to the goal of being upgraded to an emerging market, cash flow from foreign investors will be a notable factor.
“In general, the stock market in the final period of 2024 can be viewed in a positive direction. However, the current strategy needs to focus on selecting and evaluating the potential of businesses, because the possibility of cash flow differentiation according to business results of businesses is at a high level,” experts from Kafi Securities Company stated their opinion.
