The market is likely to recover soon.

Investment Comments

Rong Viet Securities: After a weak state, the market lost the support zone of 1,210 points and extended the decline. The market reacted to recover after retreating to the support zone of 1,175 points at VN-Index and created a Hammer candle. With this support signal, it is likely that the market will recover in the next trading session.

However, the recovery may be limited and re-test the supply in the newly created gap area, as the market still has potential risks after the recent distribution process. Therefore, investors still need to be cautious and observe the supply and demand developments in the current recovery. At the same time, consider the possibility of recovery to reduce the proportion of stocks and keep the portfolio proportion at a safe level to prevent risks.

VCBS Securities: From a technical perspective, although the buying pressure at the end of the session on September 22 helped the VN Index narrow the decline, selling pressure is still weighing on the market. On the hourly chart, the two indicators MACD and RSI have only created a bottom, so the market may have some rebound sessions in the coming sessions, but there is a high probability that it will not be able to regain balance in the short term.

VCBS recommends that investors take advantage of recovery sessions to reduce the proportion of stocks that have fallen below the support zone, proactively restructure the portfolio to manage short-term risks as much as possible instead of disbursing early to catch the bottom.

BOS Securities: Technically, VN-Index fell sharply with a gap and large volume, showing that large investors sold off right from the first minutes. The recovery in the afternoon session from the support zone of the lower boundary of the medium-term bullish model is a positive signal.

However, a pinbar candle is not enough to confirm that the market has escaped the downtrend, as the 1,210 area becomes strong resistance in the coming sessions. Investors are recommended to maintain a low stock ratio and not disburse new purchases.

Stock news

- The Bank of Japan (BoJ) maintained its ultra-easy policy and kept interest rates unchanged on September 22, but expressed caution about “extreme uncertainties” over the outlook for domestic and foreign growth. In a policy statement after its September meeting, the BoJ said it would maintain short-term interest rates at minus 0.1% and cap the yield on 10-year Japanese government bonds at around 0%.

At its July meeting, the central bank eased its grip on the bond yield curve and allowed long-term interest rates to move in line with rising inflation, the first policy change since Ueda took office in April 2023.

- A day after the new data was released, the BoE's Monetary Policy Committee (MPC) voted to keep interest rates on hold at 5.25%, by a margin of just 5/4.

On September 21, the Bank of England (BoE) decided to temporarily suspend the interest rate hike that has lasted for nearly 2 years in the context of the country's slowing economic growth. Despite the decision to temporarily suspend the interest rate hike, BoE affirmed that it was not subjective when seeing interest rates starting to decrease recently .

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