The stock market is likely to see a correction next week.

The domestic stock market has just had a positive week, increasing by a total of more than 45 points, reaching a new peak. Experts predict that next week, the market will likely experience a correction.

After a week of strong increases, VN-Index surpassed the historical peak price of 2022, the market maintained positive trading last week with increased liquidity. VN-Index increased for 4 consecutive sessions, surpassing the psychological mark of 1,600 points, aiming for the price range of 1,660 points.

In the financial group, some securities and insurance codes increased to the ceiling price on August 13 (screenshot).

Increased profit-taking pressure caused the VN-Index to close down, breaking the previous 9 consecutive increasing streak. The notable point of the session was that the VN-Index opened with a strong increase and at one point reached a new historical peak of 1,666 points. However, unlike previous sessions, the increase could not be maintained as profit-taking pressure gradually increased, especially in many stocks in the real estate group, causing the market to reverse and decrease.

Closing the trading week of August 11 - August 15, VN-Index stopped at 1,630 points, up 45.05 points (+2.84%).

The week saw positive gains, but no longer spread cash flow, the market was relatively differentiated when the opening tilted slightly towards green with 12/21 industry groups gaining points. Insurance, securities, and construction were the industry groups with the strongest gains this week. On the contrary, plastics, chemicals, and textiles were the industry groups under the strongest correction pressure.

Average liquidity on the Ho Chi Minh City Stock Exchange reached VND51,907 billion, up 2.37%. Foreign investors had a strong week of net selling with a value at the end of the week of more than VND8,200 billion.

According to experts from Vietnam Construction Securities Joint Stock Company, observing recent sessions with explosive volume, up to 75% of VN-Index sessions closed down, showing a high possibility that there will be a correction in this area.

VN-Index has had 2 consecutive weeks of increase, but the increase of the past week has tended to slow down when the increase was narrowed by the decline at the end of the week. Although the positive trend is still dominant, the sell signal has appeared in the decline at the end of the week, so it is necessary to limit new buying positions.

“We see that although the bullish signal is still overwhelming, the upward momentum has weakened in the past week and there is a high possibility of a correction in the sessions of next week. We maintain a cautious view, not rushing to open a bottom-fishing position in the declining sessions of next week, continuing to maintain a larger cash position. Investors should patiently wait for the balanced accumulation zone to return to a new net buying position,” this business expert recommended.

Meanwhile, expert Phan Tan Nhat, Head of Analysis Group, Saigon - Hanoi Securities Joint Stock Company (SHS), said that in history, there has never been a consecutive price increase with a strong increase of around 60% of the VN-Index without a strong correction. Therefore, investors need to be cautious and closely monitor market developments.

Source: https://hanoimoi.vn/thi-truong-chung-khoan-nhieu-kha-nang-xuat-hien-nhip-dieu-chinh-trong-tuan-toi-712952.html