Stocks struggle to recover in the short term

The stock market is lacking supportive information. Photo: Le Toan

The VN-Index is still in a tug-of-war state with selling pressure dominating, making it impossible for the market to establish a clear recovery trend.

Liquidity continues to decline sharply, showing that demand is still cautious, with no clear buying action.

In the absence of supportive information, the market is in need of a slight recovery to relieve the active selling sentiment in the market; the market is likely to move sideways but with an upward trend as the main trend.

Entering September, looking towards the remaining months of 2024, experts from Mirae Asset Securities Company believe that the market will continue to receive mixed news surrounding the general growth prospects of major economies in the region or for Vietnam in particular.

Here, the market will continue to look for new stories to lead the growth momentum as the story of Vietnam's market upgrade may once again be delayed in the FTSE's assessment report in September 2024.

To date, the completed drafts on amending laws related to securities trading and brokerage to meet the remaining criteria for the upgrading process have just been passed and are still pending before the upcoming National Assembly session in October.

On the other hand, the lack of clear growth drivers as well as the not-so-optimistic developments in many pillar stocks are likely to cause the market to record volatile trading sessions with more frequency as in the last 6 months.

The main movement is still sideways within a large range from 1,200 points to 1,280 points of VN-Index, Mirae Asset analysis group commented.

In the medium and long term, Mirae Asset analysis team believes that the market still does not have enough data to assess that the market will soon enter a trend reversal phase, and VN-Index is likely to continue moving towards the psychological milestone of 1,300 points in the context that the P/E valuation of VN-Index is still maintained at a relatively attractive level (trading below the average of the last 10 years).

However, fluctuations may appear due to increased profit-taking when VN-Index surpasses the psychological resistance zone. This trend may last until VN-Index successfully conquers the 1,330 point mark.

However, Mirae Asset believes that short-term risks still exist as the VN-Index will tend to return to the balance zone after recording an increase lasting 3 weeks before and heading towards the support zone lasting from 1,240 - 1,250 points.

Source: https://laodong.vn/kinh-doanh/chung-khoan-no-luc-phuc-hoi-trong-ngan-han-1393605.ldo