An investor observes the market's movements on a computer screen. — VNA/VNS Photo |
The stock market saw a weekly loss in the shortened trading week, with funds concentrating on selected stock groups while others experienced significant trading sessions.
Analysts suggest that at the present, upholding a prudent cash ratio can assist investors in reducing risks and seizing opportunities in times of favourable market dynamics.
Last week, the domestic stock market reopened on Wednesday after a long national holiday and had only three trading days.
Although the market witnessed a recovery in the final trading session, partially alleviating the VN-Index's decline, overall market sentiment has yet to fully recover.
The VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) closed Friday at 1,273.96 points, while the HNX-Index on the Hà Nội Stock Exchange (HNX) was last traded at 234.65 points.
For the week, both the benchmark indices posted weekly losses, down 0.77 per cent and 1.2 per cent, respectively.
Market developments showed a pronounced struggle between sellers and buyers, reflecting apprehension due to the unclear market trend.
Liquidity on both exchanges notably dwindled last week compared to the preceding week, with trading volumes plummeting by 44 per cent on HoSE and 42.5 per cent on HNX.
Foreign investors also persisted in their robust selling streak, amounting to over VNĐ1.2 trillion (US$49.4 million).
BETA Securities Incorporation expected that the market is poised to undergo a period of correction and tug-of-war in the near future. This is a critical period for investors to carefully consider stock accumulation.
Maintaining an optimal cash reserve will not only mitigate risks for investors but also position them to seize opportunities in a more favourable market environment, the firm added.
Meanwhile, the current global economic background remains turbulent, with market expectations particularly focused on the upcoming interest rate decision by the US Federal Reserve.
Domestically, core inflation rose by 0.24 per cent in August from the previous month and 2.53 per cent from a year earlier, a report from the General Statistics Office showed.
Over the first eight months of the year, core inflation increased by 2.71 per cent year-on-year, lower than the overall CPI rise of 4.04 per cent, mainly due to excluded items like food, electricity, education, healthcare and fuel impacting the CPI.
Saigon - Hanoi Securities SJC (SHS) advises that the short-term trajectory of the VN-Index is expected to maintain growth around the closest support level near 1,270 points, with stronger support between 1,250 and 1,260 points.
The market is displaying a solid recovery and notable differentiation at this price range.
The securities firm considers this to be a fairly rational price zone concerning market growth potential, potentially opening up numerous strategic accumulation opportunities based on corporate growth expectations and the third quarter business performance.
Given the current developments, the VN-Index is projected to continue striving towards the 1,280-point mark, while the VN30-Index is likely to undergo reassessment around 1,325 points this week.
In a bullish scenario, the market benchmark is anticipated to consolidate within the range of 1,280-1,300 points.
Nonetheless, market adjustments towards the 1,250 - 1,260 point range, representing the highest price levels in 2023, could still weigh on the market.
According to Dragon Capital Securities Company (VDSC), a decrease in liquidity last week signals a cooling off in the supply as the market nears the support range of 1,255-1,260 points.
A resurgence signal above the 1,270-point mark could potentially drive a recovery in the near term. The market is anticipated to retest the supply levels in the 1,280-1,290 point range.
"Investors may expect a short-term market rebound and are advised to prioritise stocks experiencing stable performance and recent capital attraction. However, a cautious approach is recommended to evaluate the recovery pace for short-term profit-taking or portfolio adjustment to mitigate risks," VDSC suggests.
In fact, the domestic stock market scenario appears subdued due to the absence of robust support information. Moreover, the global stock markets are on a downward trajectory, further contributing to a challenging environment for the local. — VNS