Expectations of being upgraded, will stocks continue to explode today?

It is expected that in the middle of this week (October 8), FTSE Russell will announce the results of the assessment and classification of the stock market, with many expectations that Vietnam's stock market will be upgraded to emerging market status. Experts believe that this will be a "boost" for the market to flourish in today's trading session (October 7) and in the coming time.

Vietnam Construction Securities Company - CSI analyzed: October 6 was an explosive trading day for the market and will likely become a springboard for the index to reach new record points. Not stopping there, the breakout brought with it a spillover factor with all 21/21 industry groups closing in green, further reinforcing the new price increase of the market.

Order matching liquidity also sent a signal supporting the VN-Index's upward momentum when it was higher than the 20-session average for the first time since early September.

" We believe that the market is completely capable of making a decisive breakthrough, surpassing the psychological barrier of 1,700 points in the coming sessions and can be supported more strongly if positive news about upgrading the Vietnamese stock market is announced ," CSI forecasts.

Also believing that VN-Index has the potential to move towards the theoretical minimum target score of around 1,770 points, Tien Phong Securities Company - TPBS still warns that "the immediate future is still a test before confirming the next trend". Therefore, the market may also face fluctuations.

Investors expect the stock market today, October 7, to continue to explode in anticipation of an upgrade. (Illustration photo)

Rong Viet Securities Company (VDSC) also believes that the stock market is being supported by positive information from GDP in the third quarter. The momentum of increasing points can push VN-Index to the strong resistance zone of 1,710 points (the old peak zone). However, the supply and demand pressure in this zone will increase, which can lead to strong disputes.

Meanwhile, commenting on the impact of the upgrade results on the stock market in the coming sessions, Mr. Nguyen The Minh, Director of Individual Client Analysis at Yuanta Vietnam Securities Company, said that the upgrade zone has now met very high criteria. However, the possibility of risks cannot be ruled out.

If upgraded, the market will continue to increase, and the VN-Index may break through the 1,720-point threshold. On the contrary, if it is not upgraded, there may be pressure to adjust. However, Mr. Minh believes that the decline, if any, will end quickly and will not be a long-term trend.

Mr. Minh also commented that banking stocks will be the pillar for the market in the coming days and throughout the fourth quarter.

Sharing the same view, Mr. Dang Tran Phuc, Chairman of the Board of Directors of AzFin Vietnam Joint Stock Company, said that if the upgrading scenario happens, it will create a lot of excitement for investors in the short term, especially large securities companies will benefit. In addition, large-cap stocks will attract foreign capital inflows.

What should investors do?

According to Mr. Dinh Quang Hinh from VNDIREC Securities Company, the market is moving into an accumulation phase. Investors should re-evaluate fundamental factors, third quarter macroeconomic information, update business results and growth prospects in the final period of the year. In addition, they should wait for information on the announcement of the market upgrade assessment results before making new investment decisions.

"Investors also need to maintain a reasonable proportion. The investment target is towards stocks with good fundamentals, leading in strategic industries, and outstanding growth of the economy ," Mr. Hinh expressed his opinion.

According to Mr. Hinh, VN-Index will continue its sideways trend, but the amplitude will gradually narrow until the morning of October 8 when FTSE announces the market upgrade results. " VIC, VRE or LPB will still be the names that keep the market pace early next week ," Mr. Hinh predicted.

However, Mr. Hinh believes that the VN-Index will only increase strongly and surpass its peak when the cash flow returns strongly to the banking group and spreads to other groups. On the contrary, this index may still turn around and adjust until the third quarter business results reporting season is announced.

Experts from Vietcombank Securities Company (VCBS) recommend that investors maintain stocks that are growing well in their portfolios. At the same time, they can look for stocks in industry groups that are recovering with the market and are attracting the attention of cash flow after a period of sideways accumulation, to disburse during the fluctuations in the session with the goal of surfing T+. Some notable industry groups include banking, securities and real estate.

Meanwhile, Asean Securities Company stated: " We believe that the VN-Index's upward momentum may be maintained at the beginning of the session on October 7 with the next target zones being 1,710 - 1,720 points. However, fluctuations may soon appear as foreign investors continue to net sell, alongside profit-taking supply around the historical peak.

After disbursing during recent adjustments and fluctuations, investors can maintain their current positions to optimize portfolio profits.

Investors holding a large proportion of cash should limit FOMO during the session's pullbacks, and only consider increasing the proportion again during the swings and accumulations. Prioritize observing sectors that benefit from loosened macro policies (banking, securities, real estate).

Investment target is towards codes with good fundamentals ".

SHS Securities Company forecasts the short-term trend of the market to be quite positive after more than 1 month of accumulation with a "boost" coming from high GDP growth in the third quarter and expectations of market upgrade.

Investors maintain a reasonable proportion. Investment targets are stocks with good fundamentals, leading in strategic industries, and outstanding growth of the economy.

At the close of trading on October 6, VN-Index increased by 46.68 points (3.02%) to 1,695.5 points, HNX-Index increased by 8.94 points (3.36%) to 274.69 points, UPCoM-Index increased by 0.14 points (0.13%) to 109.16 points.

Source: https://baolangson.vn/ky-vong-duoc-nang-hang-chung-khoan-hom-nay-co-tiep-tuc-bung-no-5061037.html