The VN-Index has had 4 consecutive sessions of decline without any notable reversal signal. The positive point is that liquidity has decreased and is at the lowest level in the last 8 sessions.
The first trading sessions of October continued to be in a sideways state (a market state that moves sideways, neither increasing nor decreasing clearly), with a less positive trend, making it difficult for investors to find profits and select stocks.
It can be seen that demand in the stock market has shown signs of slowing down in recent sessions when VN-Index has not been able to break through the strong resistance level of 1,300 points, selling pressure has increased in many groups/industry codes. The fact that the index has repeatedly failed to conquer this mark has made investors worried about investment opportunities in the coming time.
Many analysts believe that the market needs more supportive factors. The third quarter 2024 financial reporting season and the revelations of positive business results from major industries are expected to create momentum for the stock market to increase points, but the market can still have unpredictable developments.
The probability of Vietnam's market being upgraded in the October 2024 announcement period is not high, but this is an important assessment period for FTSE to recognize the positive changes that Vietnam has made, especially legal reforms and market infrastructure, thereby creating a foundation for the possibility of upgrading in the re-evaluation period in March or September 2025.
According to many previous forecasts, when upgraded, the Vietnamese stock market could receive billions of dollars of foreign capital. However, it should be noted that the roadmap takes time and there will still be some capital withdrawals, because funds specializing in investing in frontier markets can have a negative impact on the domestic stock market.
According to experts from Mirae Asset Securities, the stock market in the last months of the year will be differentiated among industry groups; the trend of cash flow concentrated in banking stocks is showing signs of widespread weakness. The decline in cash flow in many industries will cause the market to lack the necessary buffer in case profit-taking pressure returns to banking stocks.
Experts from HSC Securities Company said: "The downward trend last week has not affected the positive trend of the market in the short term.
Accordingly, the current correction has a technical adjustment element, this is a necessary movement to welcome more cash flow before returning to break through the psychological resistance zone of 1,300 points once again.
In the short term, fluctuations and adjustments are inevitable, but in the medium and long term, we remain optimistic about the market outlook. Therefore, in the context of the current adjustment movement, new buying positions are becoming more favorable when participating at more attractive discount prices."
