VCN - From November 22 to 26, the stock market has seen positive changes. This week, experts recommend that short-term "surf" investors should focus on trading in leading stocks in the market. However, they need to carefully consider the price of each specific stock so as not to hold speculative stocks with a high risk factor.
VN-Index increased by 40.68 points compared with last week
This week witnessed a continuous increase of VN-Index, compared with the previous week, and set a historic peak, reaching 1,500 points.
Accordingly, VN-Index increased by 40.68 points (2.8%) compared with the previous week. Closing the last session of the week, VN-Index reached 1,493.03 points. This is because in the last session of the week, on November 26, the VN-Index decreased by 7.78 points (down by 0.52%) compared with the previous session.
HNX-Index also increased by 4.66 points (1%) to 458.63 points. UPCoM-Index increased 1.1 points (1%) to 114.34 points.
Last week, foreign investors' transactions were headed in a negative direction when the net sold by this group was higher than the previous week by 2.7 times. Specifically, the net sold by foreign investors was at 87.6 million shares, equivalent to a net selling value of VND3,170 billion.
Market liquidity still remained at a high level, although it is decreasing compared to the previous week, with the average trading value of VND 39,719 billion/session, a reduction of 8.1%.
A positive point for the market is that large-cap transactions were more active than the previous week. In the top VN30, there were 21 stock symbol increases while nine ticker symbols declined. The last week recorded positive changes in banking stocks and contributed significantly to helping VN-Index surpass 1,500 points.
In situations that foreign investors still maintained strong net selling momentum, individual investors played an important role in helping the stock market go up.
Commenting on the drop at the end of the week after setting a new peak of 1,500 points in the previous session, MB Securities Company (MBS) said that the market felt fear due to the new variant of Covid-19 virus, however, this session's decrease was lighter compare to the other regional markets, as well as other major markets in the world. It showed that investors were not panicking. If there was no information about the new variant of Covid-19 virus, the market's decline in the last session would have been quite normal after surpassing the peak of 1,500 points.
The positive point is that key stocks such as banks and real estate, or large stocks like VIC and VNM, have tried to prevent the market from having a deep decline, despite the strong net selling pressure from foreign investors. Besides that, the positive signal from the small cap group showed that the cash flow would continue in small and speculative stocks.
According to the Asean Securities Company (AseanSC), the market recorded a slight decline due to the new Covid-19 variant in South Africa negatively affecting investors’ psychology. The positive point was that the bottom-fishing cash flow was always standing, thereby preventing the market from falling too deeply. AseanSC believed that swings and corrections were completely normal. It was also a good opportunity for investors to increase the proportion of stocks in their portfolios.
VN-Index may continue to increase
Vietcombank Securities Company (VCBS) said that the VN-Index has officially entered a short-term uptrend, mainly thanks to the pull of banking stocks and the gaining momentum which had not spread across the market.
This unit thinks that the trend of the index in this week would be to retest the support level at around 1,490 points and wait for the spread of green color to other codes on the market, before conquering new resistance levels.
Short-term "surfing" investors are still recommended to focus on trading in leading stocks in the market, but they should carefully consider the valuation of each specific stock and should not hold speculative stocks of a high proportion to avoid risks.
Meanwhile, long-term investors can still look for opportunities in stocks that have attractive valuations compared to the common ground, whilst still enjoying positive growth potential in the fourth quarter of 2021, as well as in 2022.
According to Vietnam Construction Securities Joint Stock Company (VNCSI), the uptrend had lasted for more than a month, so there was a high possibility that a correction would occur. Moreover, this was still a strong resistance level, so we continued to maintain our view that investors should stay out and observe.
“The market still showed an uptrend in the medium term, but we expected the VN-Index would have a correction to return to the support level of around (1,400 – 1,420) points. At this level, the cash flow was likely to return to the market, continuing the uptrend”, VNCSI stated.
Asean Securities Company (AseanSC) forecasted that, in the first trading session of the week, on November 29, the demand at the support area was near 1,485 - 1,490 points. This might help VN-Index recover again in the morning to test the resistance area, which was near 1,495-1,500 points. Longer forecasts saw the resistance zone at 1,505-1,510 points. The shaking might take place at high prices, so VN-Index might narrow its gaining momentum towards the end of the day.
Meanwhile, the Saigon - Hanoi Securities Company (SHS) believed that, in the next trading week from November 29 to December 3, VN-Index might continue to move towards 1,500 points. This unit recommended that investors should buy when the market surpasses the old peak of 1,420-1,425 points and buy more when the market tests the psychological support level of 1,450 points, taking profits on part of the portfolio last week. They should then maintain the ratio of stock at moderate at the moment.
By Hoài Anh/Thanh Thuy