The market needs stronger demand.

Investment analysis

BIDV Securities (BSC) : The VN-Index recovered on February 26th, closing at 1,224.17 points, up more than 12 points from yesterday. Market breadth leaned towards positive, with 13 out of 18 sectors gaining points, led by the chemical sector, followed by information technology, financial services, etc.

Bottom-fishing activity emerged at the 1,210 level, but liquidity dropped sharply compared to the previous session, indicating that market sentiment remains cautious.

In the short term, the VN-Index may recover after the correction to the 1,250-point level, but volatility is inevitable.

Saigon - Hanoi Securities (SHS) : The 1,250-point level will continue to be a strong resistance level that the VN-Index will not easily overcome in the short term. In the medium term, it is very likely that the VN-Index has reached the upper limit of the accumulation channel and begun distribution to enter a downtrend (a short-term recovery is still possible).

From a short-term perspective, although the VN-Index has recovered, SHS believes that the market will continue to experience erratic movements in the coming period, with strong sell-offs followed by accumulation over a sufficiently long period, in order to overcome the strong resistance level of 1,250 points. Therefore, SHS does not highly rate the possibility of the VN-Index surpassing 1,250 points anytime soon.

Short-term investors should exercise caution at the current stage because the VN-Index is trading in the high range of points within a medium-term accumulation channel and has signaled a correction, so short-term risks are increasing.

East Asia Securities (DAS) : After only one day of market correction (February 23rd), capital inflows rushed in as if afraid of missing out on an opportunity. The VN-Index continued its upward trend towards the 1,250-point region, supported by large-cap stocks as demand for this group was very strong. The VN30 group led the market.

For the market to continue its upward trend, the demand in the following sessions must be strong enough to absorb the large volume of shares traded at high prices during the recent correction.

2024 is projected to be a fairly favorable year for the stock market as the macroeconomic environment supports it: The banking and securities sectors benefit from low interest rates; and measures to boost public investment bring expectations to the infrastructure construction, building materials, and real estate sectors.

Stock market news brief

- Global debt reaches record high: This country has the highest household debt ratio in Southeast Asia. In its “Global Debt Monitor” report released on Wednesday, the Institute of International Finance (IIF) said global debt increased by $15 trillion in 2023, bringing the total debt to a record high of $313 trillion.

The report indicates that the debt-to-GDP ratio in emerging markets reached new highs last year, with the highest increases recorded in India, Argentina, China, Russia, Malaysia, and Saudi Arabia. According to the report, borrowing demand is increasing this year, particularly in emerging markets, as the volume of international government bond issuance rises.

- The market needs to pay attention to a crucial week for the world's number one economy: The Fed's favorite inflation measure will be released on Thursday, along with a series of upcoming financial statements. The biggest challenge for the market next week is expected to come from the latest data on the Personal Consumption Expenditures (PCE) index, the Federal Reserve's preferred inflation measure, on Thursday, US time.

Consumer confidence and manufacturing sector updates will also be in focus this week. Several quarterly earnings reports from Salesforce (CRM), Lowe's (LOW), Macy's (M), Okta (OKTA), and Best Buy (BBY) will also be released this week .

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