VN-Index is forecast to fluctuate and face short-term "difficulties"
In late July and early August, the Vietnamese stock market was excited when it surpassed the important milestone of 1,200 points. Along with that, money flowed into the market with trading sessions reaching the billion-dollar mark.
Therefore, this week (from August 7 to August 11), although it is still expected to continue to increase in the medium and long term, VN-Index is still forecasted to face many difficulties in the short term.
Forecasting for the 5 trading sessions this week, Bao Viet Securities Company (BVSC) believes that VN-Index will receive support from the 1,200-1,213 point range in early August.
While at risk of loss, this group of investors was unexpectedly given a "gift" of VND 36,542 billion by VinFast. Illustrative photo
“We maintain the view that the market's decline, if any, is only a short-term correction in a medium-term uptrend, and it is also necessary to create a trigger point for new cash flow into the market,” BVSC gave a cautious view for the short term.
According to BVSC, the short-term developments need to be noted if the VN-Index breaks below the support zone of 1,200-1,213 points. In this scenario, the market may enter an accumulation correction phase to create a new price base in the short term before continuing to aim to conquer new highs in the rest of 2023.
Investors still prioritize risk management for the portfolio in the current period. For medium-long term positions, continue to maintain holding status.
“For short-term positions, investors can consider selling to take profits to gradually increase cash ratio during market uptrends or consider restructuring to blue-chip stocks with good profit growth potential and still at attractive valuations,” BVSC still emphasized the short-term difficulties.
As BVCS predicted, VN-Index had a week of strong fluctuations. It increased significantly in the first two sessions of the week (Monday and Tuesday) but VN-Index fell sharply on Wednesday and Thursday. In the last session of the week, before the ATC, VN-Index continued to sink in red, making investors mentally prepared for a week of losses.
However, just about 1 hour before closing time on Friday, which was also the closing session of the week, VN-Index was suddenly "rescued" and turned around to increase strongly.
At the end of the week, VN-Index stopped at 1,232.21 points, up 6.23 points, equivalent to 0.51%. The capitalization of the Ho Chi Minh City Stock Exchange added 36,542 billion VND.
“Gift” from VinFast
This week, one of the strongest supporting information for the stock market is still the continuous decline in deposit interest rates, thereby causing "cheap" money to flow into stocks.
However, it must be emphasized that this information has supported the VN-Index for a long time, so now its influence is gradually decreasing. The market needs fresher support.
During the last 3 sessions of the week, when the stock market was “hungry for information” and faced profit-taking pressure, the VN-Index continuously fell to the red floor. However, the event of VinFast’s upcoming listing on the US stock market “heated up” and greatly supported the “rescue” of the VN-Index.
Thanks to VinFast's upcoming listing on the US stock market, Vingroup's VIC stock has continued to hit the ceiling. Closing the stock market session on August 11, VIC continued to stay in purple when it increased by VND4,700/share to VND72,600/share. For the whole week, VIC increased by VND10,400/share, equivalent to 16.7%. Thanks to that, Vingroup's market capitalization increased by VND39,665 billion.
Compared to the end of July 2023, VIC shares increased by VND 17,500/share, equivalent to 31.8%. Vingroup's market capitalization increased by VND 66,744 billion.
Thanks to this strong increase in VIC shares, Vingroup has regained the No. 2 position in the list of stocks with the second largest market capitalization on the Vietnamese stock exchange with VND 276,900 billion.
The top position in the list of stocks with the largest market capitalization on the Vietnamese stock exchange is still VCB of the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank).
VCB had a “slow” trading week with 3 sessions of price decline and only 2 sessions of price increase. However, with a 2.15% increase in the last session of the week, VCB still increased very slightly, increasing by 300 VND/share to 90,400 VND/share. VCB’s current market capitalization is 427,820 billion VND.
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