Stocks hit short-term peak, strategy for investors next week?

At the end of the first trading week of September, VN-Index stopped at 1,666 points, down 0.91% compared to the previous week - leaving the historical peak of 1,700 points; VN30 fell to 1,845 points while HNX Index also fell to 280 points.

Cash flow circulated between stock sectors, flowing strongly into steel, construction, industrial zones, seafood, oil and gas, technology... While strong selling pressure and profit-taking appeared in stocks that increased a lot such as securities, banks, real estate. Foreign investors continued to sell strongly with a value of more than 5,000 billion VND on HOSE last week.

Many investors are concerned about the short-term market trend – worried that the VN-Index will enter a downward correction phase after 4 consecutive months of increase. Among them, many investors still bought stocks last weekend – when the market surpassed 1,700 points.

"The brokers in my consulting group still recommended buying real estate and oil stocks last Friday. The stocks have not yet reached the account but have already lost 5-6%" - Ms. Khanh Thy (an investor in Ho Chi Minh City) worried.

- Ảnh 2. — VN-Index suddenly plummeted at the end of last week's session

According to SHS Securities Company, in recent sessions, VN-Index has increased with low liquidity, increased selling volume and is showing signs of forming a short peak around the 1,690 - 1,710 point range.

The market has shown signs of ending its outstanding uptrend to move into a correction and accumulation phase; many stocks are under strong selling pressure. Investors should maintain a reasonable proportion; investment targets are aimed at stocks with good fundamentals, leading in strategic industries, and outstanding growth of the economy .

Mr. Nguyen Tan Phong, Analyst, Pinetree Securities Company, said that VN-Index opened September with 2 consecutive sessions of increase. Cash flow has shifted from banking group to other groups of stocks such as steel, real estate, and mid-cap stocks.

According to statistics, foreign organizations net bought nearly 9,000 billion in July, but throughout August and the first week of September, foreign organizations returned to net selling nearly 29,000 billion. Domestic investors had to absorb this selling pressure to maintain the growth of VN-Index.

Not in a hurry to buy new stocks next week?

"The first session of the week will be very important for the stock market next week as it will signal the short-term trend of the market. VN-Index has support at 1,645 points - if it can hold at this support level, there will be a technical recovery and accumulation around 1,670 points.

In a more negative scenario, the VN-Index may correct to 1,580 - 1,600 points. Investors should proactively manage their portfolios, bringing the stock ratio to a safe level; they should not disburse to buy new stocks in the current period" - Mr. Phong predicted.

- Ảnh 3. — Foreign investors sold a net of more than 5,000 billion VND last week.

Vietnam Construction Securities Company (CSI) also commented that in the trading session last weekend, with high selling pressure causing the VN-Index to fall deeply, erasing the increase efforts of the previous 5 sessions, it is a strong warning sign that a correction trend may occur.

VN-Index is trading at its historical peak, the probability of a correction after more than 4 months of increase is quite high.

"With a cautious view, investors should not rush to return to their net buying position soon, and continue to patiently wait for the balance adjustment zone to have a safe buying point" - CSI Securities stated.