Hold your portfolio steady as the stock rally could last.

After a long period of fluctuation within a narrow range around the 1,100 point price range, the stock market last week (December 4-8) traded positively. Cash flow supported the VN-Index to increase by 2.02% compared to the previous week to 1,124.44 points. Similarly, the HNX-Index increased by 2.18% to 231.20 points.

During the week, liquidity on HOSE increased sharply by 59.9% compared to the previous week. The trading session on December 7 recorded a trading volume of nearly 1.3 billion shares, the highest since September 2023. HNX liquidity also increased by 68.4% compared to the previous week. In contrast, foreign investors net sold VND 3,954 billion on HOSE and VND 73 billion on HNX.

The highlight of the week came from large-cap stocks, notably in the retail sector with MWG (+9.94%), MSN (+7.64%), PET (+5.03%)... After a period of being less positive than mid-cap stocks, the banking group also had a positive trading week, with improved liquidity, with the majority seeing good price increases.

Meanwhile, the real estate group was more diversified with many codes increasing in price well such as L14 (+8.14%), DIG (+6.57%), NTL (+6.46%), PDR (+6.30%)... Codes decreasing in price included LDG (-12.17%), SJS (-5.22%), VHM (-3.06%)...

The market is still in the second recovery phase after a deep decline. The analysis team from SHS Securities Company believes that the VN-Index will gradually form a new accumulation base. In the short term, the index will soon surpass the near resistance level around 1,130 points to move towards the 1,150 point area. The mid-term trend of the index is to find a balance point to accumulate again, in the positive scenario it is the 1,150 - 1,250 point area, in the worse scenario it is the 1,100 - 1,150 point area.

"In general, in the current macro context, if the market finds a balance and creates an accumulation base to wait for the next macro movement, it is also a suitable move. Medium-term investors can still increase their proportion. The disbursement direction should be to choose leading stocks with good fundamentals and stable growth potential that are moving in the current accumulation state" - SHS assessed.

Experts from Kien Thiet Securities Company believe that positive signals still prevail. Investors should hold their portfolios, even taking advantage of strong market fluctuations (if any) to increase the proportion of profitable stocks when VN-Index tests the support level (1,102 - 1,106 points) next week. The resistance level next week is expected to be between 1,137 - 1,145 points.

Source