VN-Index expected to reach 1,270

After the adjustment session at the beginning of the week, panic suddenly struck on Tuesday, VN-Index was under increased selling pressure, causing many stocks to be in a "no buy" state, pushing the index down 50 points in just 30 minutes of trading. However, strong bottom-fishing demand pulled the index back, recovering all the losses.

VN-Index increased for 3 consecutive sessions. *Screenshot*

The volume of cheap bottom-fishing goods being traded helped reduce supply pressure in the following sessions. This, combined with positive news related to the US and China taking steps to cool down trade tensions, helped the domestic stock market reverse and increase in all three sessions of the weekend.

At the end of the trading week of April 21 - April 25, VN-Index increased by 10.11 points (+0.83%) compared to the previous week, to 1,229.23 points, maintaining above the 1,200 point price range.

Market breadth continued to recover after a sharp decline. Notably, real estate, retail, and port-transport stocks recovered strongly. Export and FDI-related stocks such as industrial parks, seafood, textiles, agriculture, oil and gas, etc. continued to recover quite well. However, the recovery rate was uneven.

Banking stocks had a gloomy trading week, while other large-cap stocks such as VIC and VHM returned to lead the market to maintain recovery until the end of the week.

The average trading value on the Ho Chi Minh City Stock Exchange was over VND21,900 billion. Notably, foreign investors returned to net buying after 11 consecutive weeks of net selling, with a net buying value of VND466 billion.

Experts from Vietnam Construction Securities Joint Stock Company said that the VN-Index had its third consecutive session of increase, but liquidity has not yet exploded strongly. However, this is still a signal to strengthen the market's recovery when positive information about tariffs has appeared in recent days.

At present, this business expert maintains a positive view with the expectation that the VN-Index will move towards the threshold of 1,270 - 1,300 points, which is the equilibrium point before the information about the reciprocal tax rate of up to 46% that the US imposes on Vietnamese goods is announced.

Regarding the outlook for the two sessions before the holiday and the week after the holiday, experts from VNDirect Securities Corporation expect the VN-Index to retest the 1,240 - 1,241 point level (the peak of the previous recovery period) and if it surpasses it, it will head towards the 1,260 - 1,270 point range.

Mr. Phan Tan Nhat, Head of Analysis Group, Saigon - Hanoi Securities Joint Stock Company (SHS), said that the market is gradually regaining balance after a period of strong selling pressure. Short-term supply pressure, relatively reduced margin debt selling pressure and business results are the driving force for the market to recover.

However, with many fundamental factors having weakened, VN-Index may accumulate for a long time in a narrow range above the support zone of 1,150 - 1,180 points and the resistance zone of 1,250 - 1,270 points. Currently, many stocks after the sell-off are relatively cheap compared to the internal factors of the business. Investors should maintain a reasonable proportion. The investment target is towards stocks with good fundamentals, leading in strategic industries, and outstanding growth of the economy.

Meanwhile, experts from Asean Securities Corporation have proposed two scenarios. In the positive scenario, the market could continue to recover and surpass the resistance level of 1,240 points as many stocks have fallen into attractive valuations. In the neutral scenario, the market will continue to move in balance and sideways around the range of 1,200 - 1,240 points.

Source: https://hanoimoi.vn/ky-vong-vn-index-huong-toi-nguong-1-270-1-300-diem-700544.html