Investors in the Vietnamese stock market are recommended to observe supply and demand movements at the current resistance area, keeping an eye on short-term opportunities from some stocks with positive technical signals.
Vietnam’s benchmark VN-Index closed this week on Friday in the 1,065-point zone like the end of last week.
This week, trading value on the Ho Chi Minh Stock Exchange (HoSE), the country’s main bourse, increased by 15.5% against last week to VND63.23 trillion ($2.7 billion). The figure for the Hanoi Stock Exchange (HNX) decreased slightly by 0.7% to VND7.95 trillion ($338.7 million).
Foreign investors net bought again, with net spending on the HoSE at VND815.4 billion ($34.75 million), and VND56 billion ($2.39 million) on the HNX.
Securities broker SHS is of the view that the VN-Index moving sideways and accumulating toward the resistance area around 1,150 points shows possible signs of a medium-term uptrend. However, it is likely that this uptrend may not come in case the index is in the 1,000-1,050 range.
"The current period in our opinion is the time the market is moving from a cautious state to a more positive state," said SHS.
According to the firm, the market in the short term has formed a rising wave and opened up opportunities for surfing, therefore short-term investors should take advantage of the market's correction moves to increase holdings.
In the long term, the market is in a state of expecting a new uptrend cycle. Investors should buy leading stocks with good fundamentals and stable growth potential that are moving in the current accumulation state.
Similarly, broker VDSC believes that the market would go up next week, heading to the 1,080-point zone, and investors should observe supply and demand movements at the resistance zone. It is necessary to consider the possibility of taking profits from stocks that have recently rallied rapidly, it added.
Technically, Vietcombank Securities said that the index has turned weak in the short term. The MACD and RSI indicators (both considered momentum indicators) on the daily frame have not shown any reversal signal, meaning that the VN-Index is likely to be re-accumulating after several gaining sessions, and this development is not surprising when cash flows in the market are not abundant.
The VN-Index will likely continue to have mixed ups and downs in a slow uptrend, according to Vietcombank Securities.
Broker KBS thinks that in general, the index’s sideways movement in a narrow range in recent sessions does not mean much in terms of trend. However, the index needs to surpass the resistance level of around 1,07x points to avoid the risk of returning to the downtrend.
KBS recommends investors temporarily stay out of the market or be in with a low proportion.