The market is facing a major resistance at the 1,300 point level.

Stock market perspective in the first week of April: The market is facing a major resistance at 1,300 points

Investors can disburse to explore stocks that have a price base and large cash flow, such as real estate codes (KDH, HDC...), steel (HPG, NKG...).

The weekly market has narrowed volatility, showing hesitation about the next short-term trend. Cash flow is strongly differentiated among each stock in the industry.

Surprised by the news that a top securities company in the market was hacked, VN-Index fell more than 1% in the first session of the week (March 25). At the 1,260 point mark, buying pressure appeared and helped VN-Index recover slightly in the session and continued to help the index increase strongly by 1.13% in the next session, successfully conquering 1,280 points. In the last 3 sessions of the week, the increasing momentum helped VN-Index surpass the 1,290 point mark, however, selling pressure pushed VN-Index back to close the week at 1,284.09 points, compared to the end of last week, the index increased by 2.29 points (+0.18%).

At the same time, the end of the first quarter of 2024 was quite positive, increasing sharply by 13.64% compared to the end of 2023, with liquidity also increasing positively.

During the week, liquidity on HoSE only reached VND124,049.00 billion, down 18.3% compared to the previous week, at an average level. Part of the reason came from an unprecedented incident when VNDirect Securities Company lost connection with the exchange for all 5 sessions during the week.

Leading the increase this week were two banking stocks, TCB and VPB, with impacts on the VN-Index of +2.3 points and +1.85 points, respectively, while VIC ranked third with an impact of +0.98 points. The negative impact was also led by two banking stocks, BID and VCB, with impacts of -2.95 points and -2.07 points, respectively.

Foreign investors maintained strong selling pressure during the week with a total net selling value of VND4,720 billion. MSN was the code with the strongest net selling value of over VND1,500 billion, followed by VND with a net selling value of VND807 billion, and ranked third was VHM with a value of VND738 billion. In terms of net selling, PDR, VPB and SSI were the three codes with the most net buying value of VND152 billion, VND151 billion and VND151 billion, respectively.

Last week, there was a lot of macro information, GDP growth in the first quarter of 2024 reached 5.66%; import-export data in the first quarter of 2024 recovered positively compared to the low base of 2023.

Total retail sales of goods and consumer services revenue at current prices recorded a growth of 10.2% over the same period, but if excluding price factors, it was only 5.1% - lower than the GDP growth of this quarter, showing that the domestic consumption picture is recovering quite slowly and this factor will need to be paid attention to in the coming time.

On March 27, FTSE Russell just released a market classification report, keeping Vietnam on the watchlist for upgrading from Frontier Markets to Secondary Emerging Markets.

However, the report has many differences compared to other periods, in which FTSE supports and acknowledges the Vietnamese stock market's efforts to find solutions to solve the problem of prefunding for foreign investors by giving securities companies the initiative to create payment support products so that foreign investors do not need to deposit 100% before trading.

FTSE's final decision will be based on "whether this solution can help solve the current problems of the Vietnamese stock market or not?" Accordingly, it is necessary to wait for which securities companies will launch this product, and which is suitable for the trading needs of foreign investors , and this group agrees that this solution can solve their trading problems, then FTSE will have a basis to give an assessment of this process.

The market view this week is still moving positively, although the market is facing a large resistance at 1,300 points, and there is currently a strong differentiation in cash flow. The current market movement is ready to overcome the resistance because the accumulation base is reliable enough, still needing to accumulate more. The market is somewhat more positive although there may still be more fluctuating sessions, but the nature of accumulation is increasing.

Investors can disburse to explore stocks that have a price base and large cash flow, such as real estate codes (KDH, HDC...), steel (HPG, NKG...).

Buying new stocks that have had strong increases in recent times is not a priority, for example, securities (SSI, VIX...), industrial real estate (GVR, SZC...), banking (CTG, TCB...), these stocks need time to rebuild the price base, absorb the supply sold down.

Source