Vietnam Stock Market Outlook: VN-Index to Move Towards Resistance Level of 1,320-1,330 Points

Market Analysis: A Cautious Sentiment

The Vietnam stock market entered the last trading week of August with a cautious sentiment, resulting in a sideways movement around the 1,280 point mark. The VN-Index experienced a narrow range of nearly 16 points from 1,274.7-1,290.45 points. Despite four out of five sessions showing an increase in points, the lack of demand gradually revealed itself with many “green on the outside, red on the inside” sessions.

The efforts to push up the price by buyers failed early in the morning session, and the resistance zone of 1,300 points remained a significant barrier. However, the demand still supported the price, preventing the index from sliding too deeply. The positive movement of large-cap stocks, with the VN30 index increasing by more than 10 points last week, contributed significantly to this outcome.

Market Liquidity and Industry Performance

Market liquidity decreased by 17.6% compared to the average of 20 trading weeks, especially in the last sessions of August. The average matched liquidity on the HSX floor reached 626 million shares (-10.81%), equivalent to VND 15,645 billion (-11.88%) in trading value.

The market opening had a poor week with 18/21 industry groups adjusting. Most sessions were green on the outside and red on the inside. Industry groups such as Consumer goods (-4.20%), Textiles (-2.26%), Steel (-2.03%), and Insurance (-1.77%) put significant pressure on the market. In contrast, residential real estate (+2.31%), Pharmaceuticals (+0.75%), and Chemicals (+0.42%) were the only industry groups that went against the trend.

Expert Insights and Recommendations

According to experts from Kien Thiet Securities Company (CSI), the VN-Index will head towards the resistance level of 1,320-1,330 points. Investors should hold on to their portfolios and consider opening new buying positions if the VN-Index corrects to test the support level of 1,253-1,255 points.

ASEAN Securities Company (ASEANSC) analysts believe that the market will retest the 1,290-1,300 point range. They recommend maintaining the stock ratio at 60% this week from September 4 to September 6.

Yuanta Vietnam Securities Company (YSVN) experts share the same view, stating that the market may continue to increase in this trading week and the VN-Index will retest the 1,290-1,300 point range. They advise investors to take advantage of corrections to increase the proportion of stocks and make new purchases.

Conclusion

The Vietnam stock market is expected to move towards the resistance level of 1,320-1,330 points. Investors should remain cautious and consider the expert insights and recommendations to make informed decisions. With the market showing signs of ending the medium-term accumulation phase early, the medium-term trend may soon become clearer in the coming trading weeks.