Stocks next week: Correction period after reaching historical peak

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 decreased to 1,845 points while HNX Index also retreated to 280 points.

Forecasting the stock market next week, Saigon - Hanoi Securities Company believes that the market has signals of creating a short-term peak at the beginning of September. Normally, after a period of strong growth, surpassing historical peaks, the market will have a period of adjustment, accumulation, and re-testing the historical peak that has been surpassed.

Therefore, investors should maintain a reasonable proportion. The investment target is towards codes with good fundamentals, leading in strategic industries, and outstanding growth of the economy .

Mr. Nguyen Tan Phong, Pinetree Securities Analyst, said that the Vietnamese stock market brought many surprises to investors in the first trading week of September.

Stocks next week: Entering a correction phase after reaching a historic peak.

Continuing the positive growth momentum in the week before the holidays, VN-Index opened the month with 2 consecutive sessions of increase. Cash flow shifted from banking stocks to other stocks such as steel, real estate, or midcap stocks.

However, while the market was in high spirits, having surpassed its all-time high and reached 1,711 points, in just the last 30 minutes of the Friday afternoon session, especially in the ATC, the pressure of profit-taking caused the VN-Index to suddenly fly up to 40 points, even though no negative information was released.

Commenting on the trend next week, Mr. Phong predicted that, technically, the VN-Index will have support at the 1,645 point area and if it can hold at this level, the stock market may have a technical recovery and accumulate around the 1,670 point area of the VN-Index. However, in a more negative scenario if bad news is released, the VN-Index may have a correction to 1,580-1,600 points.

" Investors should proactively manage their portfolios, bring the stock ratio to a safe level and should not disburse new capital in the current period. Besides internal factors, investors also need to monitor international events that may affect the global stock market, and thereby affect Vietnam, " Mr. Phong noted.

Sharing the same view, Vietnam Construction Securities Company (CSI) also believes that VN-Index is trading at its historical peak, the probability of needing a correction after more than 4 months of increasing points is quite high.

According to CSI, 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, this is a strong warning sign that a correction trend may occur.

" 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 commented.

Meanwhile, BETA Securities Company believes that instead of worrying about the fluctuations, investors should consider this a "necessary break" to prepare for the next breakthrough opportunities.

The signs of liquidity slowing down are also a signal that cash flow is choosing and ready to move to industries with long-term growth prospects. Therefore, the most reasonable strategy at this time is to maintain a cautious but flexible mindset: limit chasing purchases at high prices, prioritize selective disbursement into leading stocks. In addition, it is possible to reduce the proportion of stocks that have increased rapidly.

Experts from Asean Securities also believe that the market index will continue to fluctuate in the short term due to the influence of profit-taking supply, especially from foreign investors. The near support zone of the index is the 1,630 - 1,650 area while the near resistance zone is 1,680 - 1,690 points.

With the short-term trading school, investors holding stocks should only maintain their current positions in stocks with safe capital values and strong upward momentum.

Meanwhile, investors with a high cash ratio can observe and wait for new disbursement points with leading stock groups. New purchases should only be made in a partial disbursement direction.

Ngoc Vy

Source: https://vtcnews.vn/chung-khoan-tuan-toi-giai-doan-dieu-chinh-sau-khi-dat-dinh-lich-su-ar964135.html