Will the stock market recover next week?

The stock market is expected to recover positively next week, and can be expected to return to the resistance zone of 1,240 to 1,260 points.

Mr. Dinh Quang Hinh, Head of Macro and Market Strategy Department, VN Direct Securities Joint Stock Company, commented that next week, the market may continue to seek a balance point after a period of rapid and strong fluctuations.

Factors supporting the market include: Cheap valuation, current P/E of VN-INDEX is below 12 times, expected Q1/25 business results of listed enterprises to grow positively, updated information on the progress of KRX implementation, positive credit growth, State Bank plans to launch a VND500,000 billion package for enterprises investing in infrastructure and digital technology.

However, on the other hand, the risk of tariffs remains as the US and China show no signs of concession, continuing to escalate tensions.

“Therefore, investors should not be hasty and need to maintain a cautious mindset. The 1,240 to 1,260 point zone could be a resistance zone for this recovery. Investors should take advantage of the recovery to reassess the impact of tariffs on businesses in their investment portfolios, come up with solutions, and restructure their portfolios.

Investors should gradually shift to industries that are less affected by the trade war, benefiting from the Government's fiscal and monetary stimulus policies as well as the recovery trend of domestic consumer demand," said Mr. Dinh Quang Hinh.

According to SHS Securities Company, the period of sharp decline in VN-Index before the tariff shock has opened up many good opportunities for value investment positions. Confidence is returning to the market after the tariff shock and selling pressure. Many stocks are relatively cheap compared to the intrinsic factors of the business. Investors maintain a reasonable proportion, investment targets are aimed at stocks with good fundamentals, leading the industry.

A representative of SHS Securities Company also agreed that the tense relationship between the US and China has not shown any signs of concession, and the US's continued imposition of tariff measures could increase concerns about a global growth slowdown.

Investors should also gradually shift their investment to sectors such as banking, residential real estate, retail, electricity and public investment... These sectors tend to recover well from domestic consumption demand and will play a leading role in the growth of the stock market in the coming time.

“This is the right time for long-term investors to consider buying stocks with good fundamentals, especially in the banking and technology groups. However, short-term investors need to be cautious and closely monitor market developments next week. They should carefully consider and closely monitor macro factors as well as market developments to make appropriate decisions,” experts recommended.

PHAM DUY

Source: https://vtcnews.vn/thi-truong-chung-khoan-se-hoi-phuc-trong-tuan-toi-ar937363.html