Market unlikely to see strong correction this week

September 05, 2022 - 06:56
It is unlikely to make a deep correction this week, but can continue to accumulate on a new price base, according to expert. 
An investor watching the stock trading board. Photo

HÀ NỘI — The market traded cautiously last week with no big support force, as it closed on Thursday and Friday for Independence Day. It is unlikely to make a deep correction this week, but can continue to accumulate on a new price basis, according to experts. 

The benchmark VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) ended last week at 1,280.51 points, up 0.09 per cent, while the HNX-Index on the Hà Nội Stock Exchange (HNX) slid 0.66 per cent to 291.92 points.

For the week, the VN-Index fell slightly 0.16 per cent, and the HNX-Index lost 2.53 per cent. 

Trading value on three exchanges exceeded US$1 billion last Monday, the highest since April, after the T+2 settlement cycle was put into operation. 

Analysts from Saigon-Hanoi Securities JSC (SHS) said that the market benchmark continued to increase in the last session of August 2022, heading to a range of 1,285 - 1,290 points as expected, but trading volume kept declining compared to the previous session. The market was still positive, as profitable short-term opportunities remained. This showed that the market still has good investment opportunities, SHS said. 

The VN-Index marked a second consecutive monthly gain last month, with an increase of 6.15 per cent month-on-month, while the trading volume also improved. It is expected to continue to lean towards the psychological resistance of around 1,300 points in September. 

Currently, the VN-Index is forming an uptrend with a support zone of ​​1,260-1,270 points.

From a long-term perspective, the market is still accumulating on the basis of low valuation compared to the average of the last five years, in a context where the economy continues to grow, according to SHS. As a result, investors with reasonable stock proportions should consider selectively disbursing and accumulating ticker symbols with growth prospects in the third quarter of 2022, which are attracting short-term cash flow.

Meanwhile, Tân Việt Securities JSC said that the VN-Index witnessed positive performance in the last trading session, with a small rise and the majority of gainers. The market’s liquidity continued to decrease due to holiday pressure, while direct matching value on HOSE was only around VNĐ11.7 trillion. 

The movements of the last trading session and the recoveries of the previous two sessions indicated that market sentiment was calm ahead of the holidays. 

While global markets were still in a bearish trend, the trading behaviour of the Vietnamese market showed stability. Low liquidity had been a minus point for the market in the last two sessions, but this often happened before the holidays, the securities firm said. 

In the event that the world stock market does not have many negative movements, the opportunities for differentiation would open up next week. 

According to Đông Á Securities Corporation, the market continued to trade cautiously with low liquidity, mixed performance among large-cap stocks, and no consensus support. As investors were worried about adverse movements in the global market during the holidays, the buying force was weak.

The resistance level of ​​1,300 points is becoming difficult to break in the short term, while the negative impact from the international market caused the VN-Index to correct. However, with the stability of Việt Nam’s macroeconomic environment, the stock market expects to benefit from favourable policies such as loosening credit growth targets. 

Therefore, the market is unlikely to make a deep correction this week, but can continue to accumulate on the new price base. VNS