The trading floor of the Hồ Chí Minh Stock Exchange (HoSE). Photo courtesy of HoSE

HÀ NỘI Analysts said the stock market will proceed with its uptrend as domestic investors' cash flows continue to pour into the market, in the context that all major banks have slashed their deposit interest rates.

According to Đinh Quang Hinh, Head of Macro and Market Strategy Division, VNDIRECT Securities Joint Stock Company (VNDIRECT), the VN-Index last week set a new high since the beginning of 2023. The market's uptrend was accompanied by improved liquidity, continuous domestic cash flow pouring into the market in the context of lower deposit interest rates.

However, businesses and the economy have not yet overcome the difficult period, he said.

This week, the market will receive important macro information, which is Việt Nam's GDP growth data in the second quarter of 2023. Many forecasts suggest that GDP growth figures in the second quarter will remain negative due to a lack of export orders as well as frequent power cuts.

The market is also preparing to enter the second quarter business results announcement season. Market profits may continue to decline in the second quarter, he said.

The benchmark VN-Index on the HCM Stock Exchange rose 0.36 per cent to close Friday at 1,129.38 points. Profit-taking supply continued to put pressure on the market during the session but market movements continued to be supported and remained in green at the end of the session.

“Liquidity increased, showing an effort to support and maintain the uptrend of cash flow. It is expected that the market will continue to dispute around 1,130 points of the VN-Index, but with the existing support efforts, especially the flourishing movements of some large-cap stocks,” said Việt Dragon Securities Co.

“It is likely that the market will surpass this resistance and head to the next resistance zone, the level of 1,150 – 1,160 points. Therefore, investors can expect the market's ability to increase in the short term.

“In the meantime, it is possible to hold stocks with good accumulation background. However, it is still necessary to consider taking profit from stocks that have increased rapidly to the resistance zone or are under selling pressure from the resistance zone.

“VN-Index continued to break through the resistance zone of 1,130 points, but temporarily still could not overcome it. However, the market still recorded good supportive signals in large-cap groups. Thanks to that, the indexes all closed with bullish candlestick pattern.

“The liquidity also increased slightly, showing that the supply has not put much pressure at the strong resistance area. It is expected that the market will continue to increase to explore supply and demand in the first session of this week,” it said.

If it surpasses 1,130 points, VN-Index will head to the next resistance zone of 1,150-1,160 points. Therefore, investors can expect the market's ability to increase in the short term. At the same time, it is possible to hold stocks with good accumulative moves. However, it is still necessary to consider taking profit at stocks that have increased rapidly to the resistance zone or are under selling pressure from the resistance zone, the company said. VNS