Short-term risks remain high

Investment Comments

Asean Securities (Aseansc): The market has gradually become more active in recent sessions thanks to the leadership of foreign capital flows. Aseansc believes that short-term trading opportunities have appeared more frequently as the VN-Index has returned to an attractive valuation zone.

However, short-term risks remain high, and selling pressure may return when the VN-Index approaches the resistance zone near 1,040 - 1,050 points. Therefore, Aseansc recommends that investors limit chasing purchases, and only disburse during market fluctuations.

Vietcombank Securities (VCBS): From a technical perspective, after returning to the 1,020 zone, the buying force at the end of the session directly helped the market recover strongly. On the hourly chart, indicators such as MACD and RSI have shown signs of a short-term reversal. In the case of a positive market, this could completely be a new bottom for the market.

However, the general market is still in a downtrend. Therefore, VCBS recommends that investors consider disbursing 20-30% of their accounts with stocks that have a stronger recovery momentum than the general market while remaining cautious and not using leverage.

VCBS recommends that investors remain cautious and refrain from buying at the bottom too early. The fact that VN-Index has had short-term bounces is not enough to confirm that the market has found its equilibrium in the short term.

Agribank Securities (Agriseco) : On the technical chart, VN-Index created a pair of candles similar to the Bullish Harami pattern, indicating that the downtrend is weakening as the index retreats to the support zone of 1,010-1,020 points. The RSI indicator is in the oversold zone, also supporting the possibility of a technical recovery. However, it should be noted that liquidity has not improved and is at a lower level than the accumulation period at the beginning of the year.

Besides, the market is still likely to create a similar bullish trap with the 1,080 point area in late October. Agriseco recommends that investors carefully observe the market and limit disbursement until a clear bottom is formed or when the market establishes a stable price level.

Stock news

- Vietnam PMI in October 2023 decreased slightly to 49.6 points. The latest Purchasing Managers' Index (PMI) report by S&P Global showed that Vietnam's manufacturing industry remained below the 50-point threshold in October. This result shows that the health of the manufacturing industry has declined for the second consecutive month.

- Governor of the State Bank of Vietnam (SBV): The lending interest rate level is lower than before the Covid-19 pandemic. According to SBV Governor Nguyen Thi Hong, although world interest rates are high, the SBV has boldly adjusted the operating interest rate four times to orient the interest rate level of new loans to decrease by about 2% compared to the end of 2022.

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