Yuanta Securities recommends that short-term investors can continue to reduce leverage to low levels and restructure their portfolios, especially investors should limit new purchases during this period.
After a deep decline, the stock market continued to record fluctuations in the April 4 session. The VN-Index regained its upward momentum at many times, but intense selling pressure at the end of the day caused the index to close in the red.
At the end of the session, the VN-Index decreased 3.22 points (-0.25%) to 1,268.25 points. Foreign investors suddenly returned to net buying 481 billion VND in the entire market, thereby breaking the chain of 16 consecutive net selling sessions on the Vietnamese stock market.
Commenting on the market next session, most securities companies still maintain a relatively cautious view on the market in the context of overwhelming selling pressure while demand is not too strong to push the market beyond the barrier.
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According to BSC Securities, VN-Index has moved down and struggled around the 1,270 threshold from the 1,280 threshold. Currently, there are no clear signals about the upcoming trend of the market, investors should trade carefully.
Agribank Securities (Agriseco) opinion believes that it is possible that the index may reverse after the decline and return to the previous uptrend. However, Agriseco predicts that the adjustment period will continue to expand and the index may test 1,261-1,264 points in the next few sessions before returning to increase.
Agriseco recommends that investors increase the proportion of trading positions when the index fluctuates to the upper range, prioritizing stocks in the VN30 group and industry groups expected to announce growth in Q1/2024 business results such as steel, securities and livestock.
AseanSc Securities assesses that although the selling pressure is not great, considering that the market breadth continuously leans towards the selling side, it shows that a cautious mentality prevails. During the April 4 session, in terms of scores, there was not a very large decline, but internal developments with many stocks confirming the short-term downtrend were relatively negative.
AseanSc recommends that investors continue to hold stocks at an average level and in case the market becomes more negative, the 1,260 point area becomes the risk management zone. Investors should act more slowly if they want to buy.
Yuanta Securities also has a cautious view, believing that the market may continue to adjust in the next session and the VN-Index will retest the support zone of 1,255 - 1,260 points. At the same time, short-term risks continue to increase and liquidity may weaken in the coming trading sessions.
Yuanta Securities recommends that short-term investors can continue to reduce leverage to low levels and restructure their portfolios, especially investors should limit new purchases during this period.
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Also maintaining a cautious stance, KB Securities Vietnam (KBSV) assesses that strong corrective pressure is taking place mostly on large-cap stocks, along with negative effects spreading across the entire market, causing only temporary number that has not yet escaped the risk state.
The selling force is still somewhat more proactive and overwhelming. It is likely that the index will continue to suffer from downward inertia in the coming sessions, before being able to show a clearer recovery reaction around the near support area at 1,250 points (+-5) and further at 1,220 points ( +-10).
KBSV recommends that investors avoid chasing during rising periods, spread selling orders, and reduce the proportion of short-term trading positions when the index or individual stock codes they are holding exceed their peak.