The Vietnamese stock market is gradually finding a balance point and creating clearer conditions for long-term investment positions, said top securities broker SSI.
In its new analysis report, SSI Securities said that the information about the falling profit in the first quarter of 2023 was in line with expectations and there are no unexpected factors, so the market correction in April is not too strong.
The bright spot in the coming time is the expectation of a faster economic recovery in the context that the government and the State Bank of Vietnam (SBV) have continuously issued policies to partially remove bottlenecks in the corporate bond and real estate markets along with efforts to cool down the interest rate level.
"These bright spots are an important factor triggering the return of individual investors in the market and reducing net selling pressure from foreign investors in April," SSI wrote.
For the international context, the broker believes that the allocation of capital flows into stock funds is prudent and focuses on defensive groups and therefore, cash flow into Vietnam's stock market will struggle to avoid the trend.
SSI predicts that the pressure of net withdrawal may remain in the coming time, however, any major correction in the market will be an opportunity for investment funds' cash flow to reverse and return to the market.
Due to the stock market often looking to the future, and as the economy gradually hits a difficult bottom, SSI Research believes the stock market is finding a balance and forming a clearer picture for long-term investment opportunities.
From a technical point of view, the market will continue to fluctuate in a range from the upper limit of 1,060-1,070 points to the lower limit of 1,017-1,020 points.
During the market's sideways movement in the May cycle, there will be strong swings, which is an opportunity for investors to gradually accumulate stocks as the VN-Index approaches the lower border of 1,020 points.