FTSE Russell's market classification results are expected to be announced on October 7. According to experts, the market is currently in a wait-and-see mode and investors are cautious.
KBSV Securities experts said that in the worst-case scenario, the market will face a huge psychological shock, because most of the recent growth momentum and expectations are built on the upgrade story.
A wave of sell-offs due to disappointment could be widespread and fierce, at which point the psychological support level of 1,600 points is likely to fail.
Selling pressure could push the index back to deeper and more technically reliable support zones. I expect the market to find a new equilibrium point in the 1,530 - 1,550 point area. This is a previously solid accumulation price base and could attract long-term bottom-fishing cash flow to re-enter.
Experts advise investors to only prioritize holding stocks that are maintaining an upward trend on the technical chart, along with safe capital costs. (Illustration photo)
Phu Hung Securities Joint Stock Company believes that, regarding the results of the FTSE Russell market upgrade, the cautious sentiment will still prevail, even if the results are positive. If the market is officially upgraded, an excited reaction will occur at the beginning of the session, but investors should limit their excitement and wait for more confirmed signals to avoid the phenomenon of "price traps".
On the contrary, if the results are not optimistic, selling pressure will be stronger, because the current capital flow has weakened. The scenario of breaking the 1,600 point mark should be prepared, with the target of reaching the threshold of 1,540 - 1,550 points. Investors should keep their account ratio at a safe level, to prevent strong fluctuations that may occur.
VPS Securities experts believe that the upgrade story is not an issue that investors are too concerned or worried about, because even if the expectation of the market upgrade story increases again or funds increase buying or selling stocks, it is not certain that stocks that meet our investment standards will also increase or decrease according to such information.
" We should also pay attention to other important events and signals in the domestic market ," VPS Securities experts emphasized.
Should I invest in stocks?
According to the analysis team of Bao Viet Securities Company (BVSC), finding profits in the current period will still face many difficulties due to the strong differentiation between stock groups. Cash flow will be concentrated locally and rotated in stocks with strong growth prospects in the third quarter.
For stock buying activities, investors should only prioritize available stocks to gain advantages and stock groups with positive growth in third quarter business results such as banks, securities, retail, real estate...
" At the same time, investors should also balance the proportion of stocks and cash at a reasonable level, limit the use of margin or push the proportion of stocks too high at the current stage. Strong increases with low liquidity of the market are considered opportunities to sell short-term positions to take profits, " BVSC experts recommended.
Mr. Nguyen Viet Quang, Director of 3 Yuanta Hanoi Business Center, commented that last week, VN-Index continued to maintain a sideways state with low liquidity. However, the general market experienced a "green exterior, red heart" situation when a few pillar stocks contributed to the index but almost all stock groups fell sharply and hit bottom.
" As in the past weeks, I believe this is not the right time for investors to re-enter the market and continue to maintain a high cash ratio, waiting for the market upgrade results and the index to break the sideways state, " Mr. Quang shared.
Experts from ASEAN Securities Company advise that investors should only prioritize holding stocks that are maintaining an upward trend on the technical chart, along with safe capital prices. Meanwhile, investors with a large cash ratio can consider disbursing part of their investment during the fluctuations of potential stocks such as: Banks, Securities, Real Estate, Retail, etc.
Sharing the same view, experts from Rong Viet Securities commented that the VN-Index's sideways trend and low liquidity show that investors are waiting for supportive news to make buying and selling decisions.
Investors who have taken profits or missed the recent rally tend to wait for a sharp drop to disburse. Meanwhile, those holding stocks are waiting for information about market upgrades, causing market liquidity to be low and tend to move sideways.
With the current situation, investors can trade according to market trends, keeping a 50-50 balance of money and stocks to wait for good opportunities.
" In my opinion, we should choose stocks based on the trend of good business results; prospects of economic acceleration in the final stage of the year towards achieving the set growth target; industry groups/stocks that benefit when FTSE announces the upcoming upgrade of the Vietnamese stock market and attract foreign capital inflows ," shared Rong Viet Securities.
Source: https://vtcnews.vn/cho-thong-tin-nang-hang-thi-truong-chung-khoan-tuan-toi-dien-bien-the-nao-ar969355.html
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