VN-Index is expected to continue moving sideways.

Many analysis groups believe that stocks are in the stage of creating a foundation for a new uptrend, so the VN-Index this week may move sideways in the 1,630-1,690 point range.

Investors watch the electronic board at a stock exchange on Pasteur Street ( Ho Chi Minh City)

Last week, VN-Index failed to regain the 1,700-point mark and moved sideways with a slight decline for 4 consecutive sessions. The index lost a total of 9 points, closing below 1,660 points.

Large-cap stocks have not yet found a consensus to create a new boost for the market. The current role of keeping the pace is mainly from Vingroup (VIC) with an increase of more than 11%. The total trading value of the market in many sessions is less than 30,000 billion VND, a sharp decrease compared to the average level of nearly 50,000 billion VND a month ago. Meanwhile, foreign investors increased the pressure to sell off, shown through the net selling value in the most recent session of over 2,800 billion VND.

"The selling pressure last week focused on banking stocks - a pillar industry - putting the market under great pressure. The decline in each session was not too strong, but the plunge in liquidity showed the cautious sentiment and reserve of investors," said the analysis team ofACB Securities Company.

According to most securities companies, the market is in an inevitable accumulation trend after a long period of increase and a series of records. Over the past 5 months, the index has increased by 37% and has not had a decrease of more than 4.5% since the shock drop due to tariff information in early April. Many investors have taken profits and are not ready to return when the market lacks new information related to the upgrade and third quarter business results. Therefore, the tug-of-war, continuous reversal and closing close to the reference price may continue into this week.

Experts from Vietcombank Securities Company (VCBS) said that the index representing the Ho Chi Minh City Stock Exchange is in the process of finding momentum and rebalancing supply and demand, so it will likely move sideways within the current 30-point range.

Sharing the same view, Yuanta Vietnam Securities Company's analysis team predicted that VN-Index would recover in the first session of the week, but would remain sideways in the following sessions if it did not surpass the nearest resistance level of 1,686 points. Based on technical analysis, ASEAN Securities Company gave a similar forecast with the resistance range fluctuating at 1,670-1,680 points, which is 10-20 points higher than the current level.

With a more cautious perspective, some securities companies do not rule out the scenario of a strong correction in the index due to a combination of many factors. According to SSI, a strong correction may appear in the second half of September due to increased exchange rate pressure, a less exciting third quarter business results announcement season and profit-taking demand after a period of strong growth.

ACBS emphasized that if selling pressure persists, the VN-Index may fall to 1,600 points. This is an important psychological threshold to determine the short-term trend. If "bottom-fishing" demand appears strong and stable at this price range, the market may re-establish an upward trend.

However, in terms of medium-term developments (2-6 months), most analysts believe the main trend is still up. The current tug-of-war and low liquidity are cumulative, creating a foundation for a new uptrend. To enter a new uptrend, according to Tien Phong Securities Company, the prerequisite is that the index does not break through the 1,600-point mark in the coming sessions.

During this period, many securities companies believe that investors can continue to hold stocks that are moving sideways and do not have strong selling pressure. For investors with a large cash ratio, new disbursements are also recommended to be cautious, avoiding chasing purchases during strong increases.

"Investors can hold a high proportion of stocks in their portfolio and should not increase the proportion of stocks. If liquidity continues to decrease, they should wait to buy at a lower correction," experts from Yuanta Vietnam recommended.
PV - VNN

Source: https://baohaiphong.vn/vn-index-duoc-du-doan-tiep-tuc-di-ngang-521443.html