Stocks end correction, can wait to buy during fluctuations

Foreign investors extend net buying streak, bright spot

After a week of positive price increases, the stock market this week (January 22 - 26) gradually differentiated when 4/5 candles were red. The pressure mostly came from the banking group after many weeks of strong price increases in the overbought zone with liquidity gradually decreasing during the adjustment. The VN-Index ended the week at 1,175.67 points, down 0.49% compared to the previous week. The HNX-Index decreased slightly by 0.02% compared to the previous week to 229.43 points.

During the week, liquidity on HOSE increased by 4.4% compared to the previous week, trading volume increased by 4.3%. On HNX, liquidity decreased by 6.4%. This move shows a strong level of differentiation and short-term cash flow still has positive rotation signals, circulating in each group of codes with many codes still increasing in price during the announcement of business results in the fourth quarter of 2023. Foreign investors increased transactions and net bought for the second week with an added value of VND 890.73 billion on HOSE.

In terms of industry groups, banking stocks are differentiated within a narrow range, liquidity remains high, above average such as OCB (-2.67%), NAB (-1.91%), BID (-1.81%), EIB (-1.76%)... Stocks that increased in price include SSB (+2.31%), PGB (+1.67%), HDB (+1.67%), SHB (+1.65%)...

Meanwhile, the group of industrial park real estate stocks has many codes that have increased strongly in price and have sudden liquidity before the information about business results in the fourth quarter of 2023 maintained good growth. Notable ones are D2D (+15.22%), SIP (+10.92%), TIP (+5.88%), NTC (+4.7%)...

The market last week recorded many stocks with outstanding price increases thanks to good business results such as in the fertilizer group LAS (+11.26%), DDV (+2.91%), CSV chemicals (+17.17%), agriculture HAG (+7.30%), HNG (+5.29%), MCM (+4.83%), tire and tube DRC (+5.89%)...

End of adjustment signal

According to the analysis team of SHS Securities Company, in the short term, VN-Index is in an uptrend and signaling the end of the correction, testing the previous accumulation base. Investors can expect VN-Index to continue to increase in the coming sessions with the nearest psychological resistance level at 1,200 points. In the medium term, VN-Index is moving in the balance zone to form a new accumulation base. SHS expects the market to form an accumulation base within the range of 1,150 points - 1,250 points.

According to SHS, short-term investors can consider buying in the fluctuations in the coming sessions with the expectation that VN-Index will have a new positive increase. For medium and long-term investors, the market is gradually consolidating and forming an accumulation foundation, but this process will take a long time. Medium and long-term investors can completely disburse but with the view of buying and accumulating gradually because the time to form a new uptrend will be quite long.

Phu Hung Securities Company assesses that the main short-term trend is still recovery. Therefore, the correction signal may only be technical and an opportunity to restructure the portfolio with the target of the index moving up to the near resistance zone around 1,200 points or further to 1,250 points.

KB Securities Company believes that VN-Index will likely continue to be under pressure when it approaches the old resistance zone around 1,185 points (+/-10). Investors should avoid chasing the early recovery and only place short-term buy orders for a portion of the proportion when the index drops to the support zone near 1,150 points (+/-5).

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