The market is likely to continue its recovery.

Investment Comments

Yuanta Securities: The analysis team believes that the market may continue to recover in the next session and the VN-Index may fluctuate around the 100-session moving average. At the same time, short-term risks remain high, so short-term downward pressure is still large and the market is only in the technical recovery stage after a series of consecutive declines.

The positive point is that the VN-Index still maintains the support level of 1,125 points, this is an important support zone to assess that the market's medium-term uptrend cycle is still in correction phase 4 and the possibility of returning to the uptrend wave 05 still exists.

The short-term trend of the general market remains DOWN. Therefore, in the short term, Yuanta recommends that investors can take advantage of the recovery to reduce the proportion of stocks, especially prioritize reducing the margin ratio to a low level or can implement the strategy of buying low - selling high to reduce the cost of capital and reduce the proportion of stocks. However, investors do not need to sell the entire portfolio.

PSI Securities: The technical chart of VN-Index is a candle with a short leg, indicating that demand is ready to enter the market when the index retreats. However, the next resistance zone is likely to be the 1,160 - 1,175 zone corresponding to the 100-day moving average.

The current appropriate recommendation is to observe market developments, avoid panic selling and only reduce stock exposure during technical market recoveries.

TPS Securities: Green returned as VN-Index retreated to the lower limit of the uptrend channel starting from November 2022 (around 1,120 points). Along with that, the image of a long lower candle shadow around the above support shows that bottom-fishing cash flow has shown signs of returning to the market at this equilibrium point. However, the decline in liquidity partly reflects investors' caution after 4 consecutive sessions of adjustment.

Currently, the market is expected to accumulate on the support level around 1,120 points to gradually absorb the selling pressure that is still high, thereby creating conditions for the index to reverse. On the contrary, if the above support is broken, the index may retreat to lower equilibrium points at 1,100 points.

Stock news

- Trina Solar - one of the world's largest solar panel manufacturers by revenue - plans to invest $400 million in its third factory, covering 25 hectares. Production at the new factory is expected to begin in 2025.

Another Reuters source said Trina Solar could commit to investing up to $600 million in Vietnam. Trina Solar’s investment plan follows an investigation by the U.S. Commerce Department that concluded last month that Trina Solar was among five Chinese solar companies that used products made by factories in Thailand and other Southeast Asian countries to evade tariffs on Chinese-made panels.

The tariffs on Chinese-made panels are currently expected to take effect in mid-2024 and will only affect Trina Solar’s operations in Thailand. However, the establishment of manufacturing plants in Southeast Asia by Chinese companies to export panels to the US is still being closely monitored.

- The State Bank of Vietnam has just announced the results of the open market auction on September 27. Accordingly, this agency continues to offer 28-day treasury bills under the interest rate bidding mechanism. The result is that 9/12 participating members won the bid with a total volume of VND 20,000 billion, interest rate of 0.65% - higher than yesterday's session (0.58%) and the first session of the week (0.49%).

On the channel of pledging valuable papers, there were no new transactions and the circulation remained at 0. In total, the State Bank withdrew VND 20,000 billion from the system in the trading session on September 27. With a term of 28 days, this amount will be pumped back into the system by the State Bank on October 25, 2023 .

Source