VN-Index sticks close to 1,300 points, which stocks will the money flow into?

The stock market has just experienced a week of mixed trading despite increasing points compared to the previous week. VN-Index ended the week up 1.3% to 1,263.78 points, HNX-Index up 1.4% to 239.54 points and UPCOM-Index up 0.2% to 91.35 points. Of which, VCB (-1.16%), VPB (-1.84%) and SAB (-3.33%) put pressure on the general index. On the contrary, GVR (+19.31%), FPT (+5.45%) and GAS (+3.52%) were the main factors contributing to the market's growth.

Also this week, liquidity on the three exchanges improved by 15.7% compared to the previous week to VND30,135 billion/session. Foreign investors continued to net sell, mainly on HOSE with a value of VND2,609 billion, HNX and UPCOM net sold VND88 billion and VND152 billion, respectively.

Assessing the market, Mr. Thai Khac Duc - Investment Consulting Director, VPS Securities Company - said: "VN-Index is at a fairly high point of over 1,250. This is a rather sensitive area as investors are waiting for corrections to increase the number of stocks they are holding. However, it can also be seen that the market has some great potential, especially the cash flow to catch the bottom of stocks when prices are adjusted in major or large groups, such as banking, securities, retail or steel".

According to Mr. Dinh Quang Hinh - Head of Macro and Market Strategy Department, Analysis Department of VNDIRECT Securities Company, the stock market is looking forward to an important trading week when the FED will have a meeting on monetary policy on March 19-20. The VN-INDEX may retest the resistance zone around 1,280 points.

"If the FED's scenario is not too "hawkish" compared to the market's previous expectations (starting interest rate cuts from the second quarter of 2024 and having at least 3 cuts in 2024), we can completely expect a positive reaction from financial markets around the world," said Mr. Hinh.

In addition, the stock market did not react too negatively to the State Bank's move to issue treasury bills. This is because the market currently has many supporting factors compared to the time when the regulator made a similar move last year (September - November). These include a clearer economic recovery prospect, a positive first quarter business results picture that is expected to support the market (in complete contrast to the third quarter picture last year), and a strong domestic cash flow, supported by a low interest rate environment and expectations for a market upgrade.

In general, Mr. Dinh Quang Hinh predicts that the market's upward trend from the beginning of the year has not been violated. The VN-Index may retest the resistance zone around 1,280 points next week. Investors can continue to hold stocks, prioritizing allocation to groups of stocks with supporting fundamental factors such as securities, consumption, export, and industrial real estate.

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