The decline is only short-term, stocks next week will soon return to the 1,150 point zone.

The stock market experienced a negative trading week under strong net selling pressure from foreign investors. VN-Index retreated to 1,102 points, down 1.97% compared to last week. HNX-Index had a similar performance, down 1.81% compared to last week to 227.02 points. Liquidity on HOSE decreased by 25.8% compared to last week, HNX also decreased by 32.0%.

Foreign investors increased their net selling this week with a value of 3,461 billion VND on HOSE, focusing on the banking, steel, and real estate groups. They net bought on HNX with a value of 154 billion VND. Some experts believe that the trading move may come from Thai investors as this country will impose personal income tax on foreign investments, effective in early 2024.

Most of the large-cap stocks in VN30 were under strong correction pressure under selling pressure from foreign investors such as MSN (-4.83%), BCM (-4.62%), VPB (-4.59%), MWG (-4.34%)... Real estate stocks had less positive developments with PDR (-8.36%), L14 (-6.07%), DIG (-5.79%), QCG (-5.65%), NHA (-5.62%)...

Meanwhile, financial services and securities stocks showed a glimmer of green with MBS (+2.73%), HCM (+1.61%), FTS (+0.71%)...

Experts from SHS Securities Company assess that the short-term market is in a correction phase. Expectations are moving towards the short-term resistance zone of 1,150 points if the VN-Index increases again and successfully tests the support level of 1,100 points.

"Short-term investors in this case can still disburse with a low proportion because the recovery, if it happens, will be difficult to predict and can end at any time. In the medium and long term, even though the market loses its upward trend, it will find a new balance point and accumulate, so the medium and long-term risk is not high. Medium-term investors can still consider disbursing during periods of decline, the target should be towards leading stocks with good fundamentals, stocks with growth potential in the coming year and are moving in an accumulation state" - SHS said.

VCBS Securities Company assessed that in terms of technical aspects, in terms of hourly charts, the two indicators MACD and RSI are in the oversold zone, indicating a high probability that the market will have rebound sessions next week. In addition, in the daily charts, the two indicators mentioned above have only created one peak, indicating that this is only a short-term correction in a long-term uptrend.

Therefore, VCBS believes that investors still need to maintain a stable mentality. Maintain the proportion of stocks that are still holding the short-term support zone, do not panic and sell in strong fluctuations. Strong declines will be a good opportunity to disburse part of the stocks that are still in a medium-term uptrend.

Source