► Some stocks to watch on October 18th
The VN-Index rose above the support zone around 1,280 points.
After three consecutive declining sessions, the VN-Index closed in positive territory on October 17th at 1,286.52 points (+7.04 points, or +0.55%). Notably, trading activity was largely sluggish in terms of liquidity. In the early afternoon, the VN-Index fell to its lowest point at 1,271.86 points, but then active buying demand began to improve, with capital mainly concentrated in the Real Estate and Banking sectors. Similarly, the HNX-Index closed positively at 230.12 points (+1.86 points, or +0.81%). Market breadth favored buyers with 183 stocks rising, 110 stocks falling, and 65 stocks remaining unchanged on the HOSE. On the HNX, 84 stocks rose, 59 remained unchanged, and 59 stocks fell.
Liquidity on both exchanges increased compared to the previous trading session, with trading volume rising by +28% on HOSE and +49.83% on HNX. The banking sector performed well, notably STB (+2.98%), MSB (+3.94%), TPB (+2.29%), EIB (+1.90%)... The most positive sector contributing to today's market increase was Real Estate, with stocks like DXG (up to its maximum limit) (+6.98%), PDR (up to its maximum limit) (+6.85%), DIG (+5.25%), NTL (+2.98%), NVL (+2.45%), CEO (+6.21%), HDC (+4.35%)...
According to experts at Saigon - Hanoi Securities Company (SHS), the short-term trend is for the VN-Index to grow above the support level around 1,280 points, the current 20-day moving average. The VN-Index is performing quite well, recovering quickly to the 1,270 point level, and continuing to maintain narrow fluctuations within the 1,280-1,300 point range. The 1,300 point level remains a very strong resistance level, corresponding to the peak from the beginning of 2024 to the present, as well as the highest price level in June-August 2022. The index may overcome this strong resistance level in the near future as the macroeconomic situation and the outlook for Q3 business results of companies continue to remain positive.
In the medium term, the VN-Index is expected to grow above the support zone around 1,250 points, heading towards 1,300 points, and potentially extending to 1,320 points. The expectation is that the VN-Index will surpass 1,300 points to reach higher levels above 1,320 points. The 1,300-1,320 point range represents very strong resistance levels, including the peak prices of June-August 2022 and the peak prices of the first few months of 2024. This is a fundamental resistance zone; the market can only overcome these strong resistance levels when there are positive macroeconomic support factors, outstanding business growth, and when uncertainties such as geopolitical tensions like the Russia-Ukraine conflict and the Middle East subside.
“In the short term, investors may consider disbursing funds when the market continues to face downward pressure; however, chasing the VN-Index towards the 1,300-point mark is not recommended. Investors should maintain a reasonable portfolio allocation and carefully select high-quality stocks for disbursement, as the market is currently receiving earnings reports. Investment targets should be focused on leading stocks with strong fundamentals, good Q2 earnings growth, and positive Q3 earnings prospects,” an expert from SHS stated.
The market is likely to continue its upward trend.
According to the analysis team of ASEAN Securities Company (ASEANSC), the Real Estate and Banking sectors led the gains, helping the overall market rebound strongly in the afternoon session on the derivatives expiration day, after persistent retreats in recent sessions. The positive market reaction at this short-term support level helped the index maintain its long-term upward trend, creating a positive sentiment and supporting the index's ability to rebalance and move towards testing the previous peak.
“Investors should closely monitor overall market developments and maintain an average portfolio weighting, while seeking stocks with strong fundamentals and positive Q3 earnings results. We highly value the medium- and long-term market outlook; however, investors should be aware of potential risks arising from upcoming US stock market news. Therefore, close observation of global markets is necessary to confirm how long the upward trend can continue,” an ASEANSC expert noted.
Meanwhile, experts from Yuanta Securities Vietnam (YSVN) believe that the market may continue its upward trend in today's session (October 18th), and the VN30 index may test the resistance level of 1,374 points. At the same time, the market is still in a short-term accumulation phase and shows signs of ending this phase in the next few sessions. Furthermore, the slight increase in sentiment after two weak sessions indicates that investors have become less pessimistic about the current market developments. A positive sign is the increased flow of capital into Midcap stocks, specifically real estate stocks.
"The short-term trend of the overall market remains neutral. Therefore, investors can continue to hold stocks at 40-50% of their short-term portfolio and should only consider making new purchases at a low rate," YSVN experts recommend.
Source: https://vov.vn/thi-truong/chung-khoan/nhan-dinh-chung-khoan-1810-thi-truong-co-the-tiep-tuc-da-tang-post1129166.vov
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