Be careful to avoid panic selling.

Investment Comments

KB Securities Vietnam (KBSV) : VN-Index increased with a widening range towards the end of the session on February 19. Cash flow continued to spread positively in large-cap stocks, playing a major leading role for the index and creating a positive trading effect on the entire market.

Although technical signals show that the trading status is somewhat overbought and the risk of a short-term correction still exists, the upward momentum expected by KBSV is still somewhat dominant with the main driving force from pillar stocks and increased liquidity.

Investors are recommended to buy back in parts when the index turns down to the support point around 1,170 (+/-10 points) or individual target codes return to notable support zones.

Asean Securities (Aseansc) : The market increased well in the session of February 19, but the notable point came from the group of pillar stocks, which strongly affected the score, especially in the afternoon session when many large-cap stocks hit the ceiling.

Market breadth increased at the end of the session with 60% of stocks on HoSE turning green, continuing to support the index's upward trend. However, Aseansc believes that risks will increase along with the VN-Index's score.

Beta Securities : From a technical perspective, in terms of trend, VN-Index remains above the MA10 and MA20 lines, continuing to show an uptrend in the short term and may head towards the resistance zone of 1,250 points. Indicators such as SAR, MACD and the pair (DI+,DI-) remain positive and reinforce the current trend. However, the RSI indicator is in the overbought zone and VN-Index continues to stick to the upper band of the Bollinger Bands.

Beta forecasts that in the trading session of February 20, the market is in an overbought state, so profit-taking pressure is likely to increase, leading to fluctuations and adjustments. However, with the determined efforts of the operator to meet the conditions to upgrade the Vietnamese stock market, this will contribute significantly to bringing positive signals to the market in the future.

Cash flow will likely focus on stocks with positive signals from previous accumulation. Therefore, investors can pay attention to stocks with good accumulation and at the same time be careful to avoid selling off before market corrections.

Stock news

- Seafood exports in January increased by more than 60%: Expected to be a big success in 2024. The Import-Export Department ( Ministry of Industry and Trade ) cited data from the General Department of Customs, estimating that in January 2024, Vietnam's seafood exports would reach 730 million USD, an increase of 60.8% over the same period in 2023 because January 2023 coincided with the Lunar New Year holiday.

- The Fed has a 'solid' reason to keep interest rates high for a long time instead of cutting them immediately as the market expects. By the end of 2023, stocks are soaring, the labor market is strong, consumers are spending big and the inflation story is cooling without increasing unemployment.
This has led the Federal Reserve to start considering rate cuts. Some even predicted as many as six rate cuts starting in March. However, Fed Chairman Jerome Powell and his colleagues at the central bank have dismissed these predictions. The market has pushed the rate cut forecast further into 2024 .

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