Should we take profit at 1,300 points?

(NLDO) – Despite having the 6th consecutive week of price increase, VN-Index is forecasted to fluctuate strongly around the 1,300 point area. Investors need to choose the right strategy.

The stock market increased for the 6th consecutive week from the 1,220 point price range. VN-Index closed the week at 1,305.3 points, up 0.66%; HNX Index closed at 239.19 points, up 0.68% compared to the previous week.

VN-Index remained stable above the 1,300-point mark despite a few volatile sessions during the week. Cash flow shifted between industry groups, with active trading in rubber, securities, steel, real estate, industrial park stocks, etc.

Market liquidity increased for 6 consecutive weeks with trading volume on HOSE increasing by 13.1% compared to the previous week, cash flow is still improving quite well. In contrast, foreign exchange increased net selling strongly on HOSE with a value of more than 2,529 billion VND last week.

Experts from Pinetree Securities Company said that the stock market had a successful trading week when the VN-Index officially surpassed 1,300 points.

The market also marked the first time the VN-Index maintained the 1,300 mark for 5 consecutive sessions, in nearly 3 years.

However, next week will be a more difficult trading week, as the VN-Index is struggling around the important psychological mark of 1,300 points.

"The breakout is difficult to confirm without the momentum from banking stocks, but in terms of price, this group is no longer too cheap.

Not to mention, information about inspections of banks showing signs of unfair competition when increasing deposit interest rates and requiring banks to reduce lending interest rates... could impact the net interest margin (NIM) of the banking system" - Pintree experts said.

Stock market gains for 6 consecutive weeks

Forecasting next week, market developments depend a lot on whether cash flow returns to pillar stocks and spreads to the whole market or not?

In a slight correction scenario, VN-Index may return to the 1,285 - 1,290 point range to gain momentum; in case of stronger fluctuations, the market may return to 1,255 - 1,260 points.

Mr. Dinh Quang Hinh, Head of Macro and Market Strategy Department, VNDIRECT Securities Joint Stock Company, forecasts that early next week, the market may continue to retest the 1,300-point zone and developments in this zone may determine the short-term trend.

If VN-Index continues to maintain above 1,300 points, the uptrend will be maintained and the market may head towards higher levels. On the less positive side, if it fails to maintain above 1,300 points, the index may turn around and correct to the support level of 1,280 points.

"Investors need to prepare for both of these possible scenarios. It is necessary to control the leverage ratio at a safe level, proactively reduce the proportion of stocks in the group that has increased rapidly and can consider shifting some of the portfolio to the group of stocks with medium and small capitalization in some priority industries such as electricity, residential real estate and export" - Mr. Hinh expressed his opinion.

Source: https://nld.com.vn/chung-khoan-tuan-toi-tu-3-den-7-3-co-nen-chot-loi-o-vung-1300-diem-196250302090340997.htm