Vietnam stocks cannot surpass 1,700 points

According to securities companies, liquidity in the last 6 sessions has been lower than the average of 20 sessions, showing that the momentum for a breakthrough is not high.

On September 16, VN-Index reversed from increasing to decreasing in the last minutes of the session, closing at nearly 1,681 points, losing 4 points compared to the reference and breaking the previous 5-session increase streak.

Before the trading session, many investors expected the market to surpass 1,700 points when Finance Minister Nguyen Van Thang, in a meeting with the London Stock Exchange (LSE), said that Vietnam had made efforts to meet the upgrading criteria of the stock market rating and rating organization FTSE Russell.

However, the euphoria only lasted in the morning session when the VN-Index accumulated more than 12 points, approaching the 1,700-point mark. The uptrend gradually weakened due to profit-taking pressure on mid- and small-cap stocks.

Explaining this "failed" breakout session, Mr. Nguyen The Minh, Director of Analysis for Individual Clients at Yuanta Vietnam Securities Company, said that the market is still in a state of sideways accumulation, not exploding as expected. Although there is updated information about upgrading the stock market, the final result will have to wait until October 7, according to FTSE Russell's announcement.

"Currently, investors are watching the US Federal Reserve's meeting on September 17 regarding interest rate cuts and the extent of the cuts in this adjustment. This week, ETFs will also restructure their portfolios, so investors are somewhat cautious. Therefore, the 1,700-point mark of the VN-Index this September is being affected by many factors," said Mr. Minh.

According to securities companies, liquidity in the last 6 sessions has been lower than the 20-session average, indicating that the momentum for a breakthrough is not high. The market is potentially risky if liquidity does not improve.

Source: https://nld.com.vn/chung-khoan-chua-the-vuot-1700-diem-196250916203902528.htm