The market may continue to decline.

►Some stocks to watch on October 23

VN-Index adjusted with pressure to retest the price range of 1,250 - 1,260 points

VN-Index in the trading session of October 22 recovered slightly in the morning with strong differentiation, liquidity decreased, then selling pressure gradually increased, quite suddenly in the late afternoon session with less positive liquidity increase. At the end of the trading session on October 22, VN-Index decreased by 9.88 points to 1,269.89 points. Market breadth was tilted towards the selling side with 213 stocks decreasing in price, 99 stocks increasing in price, 47 stocks referenced at HOSE.

Liquidity increased compared to the previous trading session when the matched volume increased by 25.52% at HOSE. Foreign investors continued to net sell with -138.63 billion VND at HOSE on October 22, focusing on KDH (-68.81 billion), VRE (-51.31 billion), HPG (-46.84 billion) and VCI (-39 billion)... in the opposite direction, net buying MWG (+76.64 billion), TCB (+65 billion)...

According to experts from Saigon - Hanoi Securities Company, in the short term, VN-Index will end its growth phase and move to a correction with pressure to retest the price range of 1,250 points - 1,260 points, the highest price in 2023. In the medium term, VN-Index will grow above the support zone around 1,250 points, heading towards the price range of 1,300 points, expanding to 1,320 points, a very strong resistance zone. The market can only overcome these resistance zones when there are good macro support factors and outstanding business growth results. At the same time, uncertain factors such as geopolitical tensions such as the Russia - Ukraine war and the Middle East cool down.

At the end of the trading session on October 22, VN-Index decreased by 9.88 points to 1,269.89 points.

“The short-term trend is becoming less positive. The accumulation and adjustment process may continue as the market is about to be empty of information after the third quarter of 2024 business results report, as well as uncertain information about the upcoming US election. Investors should maintain a reasonable proportion, and disbursement positions should carefully select good quality stocks. In case of high speculative proportion and expanded portfolio, it is necessary to consider the structure of stocks that are weaker than the general market, if any. The investment target is to focus on leading stocks with good fundamentals and positive growth prospects for third quarter business results,” said the SHS expert.

The market is likely to continue its downward trend.

According to the analysis team of ASEAN Securities Company (ASEANSC), the strong net withdrawal pressure in the banking group has made the trend worse and the risk of maintaining the support zone of 1,265 - 1,271 more fragile - this is also the key to confirm the transition from the sideways phase of wide fluctuations to break the neckline, confirming the short-term downtrend pattern. The move by the State Bank to continue issuing credit notes to stabilize the exchange rate in the context of the exchange rate being tense again, shows that the trend of switching from liquidity support to net withdrawal continues to negatively impact market sentiment. In addition, the world's major stock indexes continue to move at the peak with signs of slight decline, bringing potential risks.

The market may continue to decline (Illustration: KT)

“The psychological pressure from the above information is the reason why the market is negative in the short term and gradually decreases over time, however, the indexes will have more positive recovery signals in the future. Therefore, investors should be cautious, manage their portfolios closely to monitor short-term market developments to see how long this correction trend will last, stocks with good fundamentals and positive Q3 business results are the focus of monitoring after confirming the balance appears,” ASEANSC experts noted.

Meanwhile, experts from Yuanta Vietnam Securities Company (YSVN) believe that the market may continue to decline in today's session, October 23, and the divergence may continue. At the same time, short-term risks are showing signs of increasing, especially the risk of Midcaps and Smallcaps stocks remains high, so investors should not buy again at this stage. Divergence may still occur, but the level of divergence will gradually narrow in the coming trading sessions.

“The short-term trend of the general market remains neutral. Therefore, investors can continue to restructure the proportion of stocks to 40-45% of the short-term portfolio. At the same time, investors should temporarily stop buying new stocks during this period,” YSVN experts recommended.

Source: https://vov.vn/thi-truong/chung-khoan/nhan-dinh-chung-khoan-2310-thi-truong-co-the-tiep-tuc-da-giam-post1130210.vov