The market is likely to continue its downward trend.

Investment Comments

Asean SC Securities: The analysis team believes that the market is experiencing selling pressure, in the context of the State Bank continuing to absorb net liquidity through the treasury bill channel. Investors need to observe the demand when the VN-Index retests the mid-term support zone of 1,120-1,130 points and limit the stock sell-off when the market has corrected deeply.

Incremental or exploratory moves should be considered with fundamental stocks that have been deeply discounted from their peaks and have good prospects for Q3/2023 business results in case the market shows signs of rebalancing.

Yuanta Securities: The analysis team believes that the market may continue to decline, but the VN-Index may see a recovery at the support level of 1,125 points.

At the same time, technical indicators have fallen sharply to the oversold zone, so the price chart may experience a technical recovery during the session. The negative point is that the short-term risks have increased, indicating that the market will find it difficult to have a long-term recovery, so investors should prioritize reducing the proportion of stocks instead of the average price buying strategy. In addition, investor sentiment indicators are still in an overly pessimistic phase, so the market may often experience technical recovery.

The short-term trend of the general market remains DOWN. Therefore, in the short term, Yuanta recommends that investors can continue to reduce the proportion of stocks and limit new purchases during this period.

TPS Securities: VN-Index extended its decline to 4 points and broke the support levels of SMA 20, 50 and most recently the 100-day SMA, thereby continuing to fall deep into the lower limit of the uptrend channel starting from November 2022 (around 1,120 points).

Currently, the price zone around 1,120 points is expected to help the market's decline slow down to gradually absorb the increased selling pressure, thereby creating conditions for the index to reverse. On the contrary, if the above support is broken, the index may retreat to lower equilibrium points at 1,100 points.

Stock news

- From October 1, domestic banks and foreign bank branches must comply with the maximum ratio of short-term capital used for medium- and long-term loans of 30% instead of 34% as present. According to the provisions of Circular 08/2020/TT-NHNN of the State Bank issued on August 14, 2020 amending and supplementing Circular 22/2019/TT-NHNN, the maximum ratio of short-term capital for medium- and long-term loans of banks will be reduced to 30% from October 1, 2023.

- According to data from the Vietnam Food Association (VFA), in the trading session on September 25, Vietnam's rice export prices continued to decline. Specifically, the export price of 5% broken rice decreased by 5 USD/ton to 608 USD/ton; the price of 25% broken rice also decreased by a similar amount, to 593 USD/ton.

Compared to the peak of 643 USD/ton set on August 31, the export price of 5% broken rice from our country has now decreased by 35 USD/ton, gradually falling to the mark of 600 USD/ton. After reaching a peak of 628 USD/ton on August 28, 25% broken rice has now also decreased to 593 USD/ton .

Source