(NLDO) – Falling interest rates could boost the stock market's growth next week, even though the VN-Index has increased for 7 consecutive weeks.
The Vietnamese stock market had a strong week. The VN-Index closed the week at 1,326.05 points, up 20.69 points from the previous week; the HNX Index stopped at 238.41 points, down slightly by 0.78 points from the previous week.
Last week, the market's growth slowed down in the first three sessions of the week due to profit-taking pressure and mixed developments surrounding the US's imposition of tariffs on Mexico, Canada and China. However, the VN-Index broke out in the last two sessions of the week thanks to positive domestic news.
Mr. Dinh Quang Hinh, Head of Macro and Market Strategy, VNDIRECT Securities Company, analyzed that the State Bank has announced to stop issuing treasury bills after a long time using this tool to regulate liquidity, a move that demonstrates a strong commitment to supporting liquidity for the system to lower market interest rates according to the Government's direction. At the same time, the State Bank also deployed additional solutions to support longer-term liquidity for the banking system.
VN-Index has a 7-week consecutive increase and is forecast to be positive next week.
These steps have helped the interbank interest rate level to decrease quite sharply, overnight interest rates to around 4%... promoting the growth of the stock market, especially banking and securities stocks. In addition, the information that Vinpearl submitted its listing application to HOSE, a very notable move after a long period of the market lacking IPOs and listings of large enterprises. After this information, VIC shares hit the ceiling at the end of the week.
"Next week, with positive sentiment spreading, the market may reach the strong resistance zone of 1,340 - 1,360 points, fluctuations will appear. Investors can consider selling to take partial profits, reducing leverage to a safe threshold to avoid short-term corrections that may appear in this area" - Mr. Hinh said.
The stock market is at its highest level since May 2022.
Experts from Pinetree Securities also said that the stock market has had 7 consecutive weeks of gains and ended at its highest level since May 2022 with liquidity increasing every week. VN-Index is one of the best performing markets in Asia in the past few weeks.
"It is likely that the upward trend will continue early next week, especially with unofficial information about the KRX system and the State Bank's monetary policy easing move. VN-Index may have adjustments next week but cash flow will rotate to other stock groups. In a positive scenario, VN-Index may reach 1,350 points" - Pinetree Securities experts predicted.
Although the market is forecast to continue to increase, many securities companies recommend that investors who "missed the wave" or have low proportions should patiently wait for disbursement during the adjustment period to have a better position and capital price.
Kien Thiet Vietnam Securities Company stated that at the resistance level of 1,327 points, the possibility of a correction to the support zone of 1,290 - 1,310 points is very high. Investors should limit new purchases, and may even continue to wait to sell stocks to take profits in the short term, only buying back when the market corrects down.
Real estate stocks increased most positively last week
Source: https://nld.com.vn/chung-khoan-tuan-toi-10-den-14-3-lai-suat-giam-vn-index-se-tang-tiep-196250309143708587.htm
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