Most securities companies forecast that the short-term downtrend of the market is returning and that investors should consider keeping a reasonable proportion to avoid unexpected risks.
The market benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) lost 2.61 per cent to end at 1,443.32 points.
The index had declined 3.33 per cent last week.
An average of 966.9 million shares were traded on the southern exchange during each session last week, worth VND29.7 trillion (US$1.3 billion).
According to Phu Hung Securities Joint Stock Company, technical signals show that the short-term downtrend of the VN-Index is returning.
“The VN-Index might continue to be under correcting pressure to return to the support zone of 1,400 - 1,422 points,” it said.
According to Rong Viet Securities Joint Stock Company (VDSC), after several unsuccessful sessions, VN-Index had broken the support area of 1,470 points and created a short-term negative trend.
“The index had dropped rapidly to near the support zone at 1,430-1435 points. VDSC believes that VN-Index is likely to be supported in this area and recover technically with a close resistance at 1,465 points,” it said.
"Therefore, investors should suspend selling if the portfolio poses few risks and wait for recovery to re-evaluate the market status and then adjust the portfolio," VDSC recommended.
According to Vietcombank Securities Limited Company (VCBS), after bouncing up from 1,440, the VN-Index dropped quite deeply last week.
“Liquidity also dropped slightly compared to last week, showing scepticism of investors in the context of a pessimistic outlook over the stock market due to the appearance of a new strain of the SARS-COV-2 virus,” it said.
“The cash flow is still unlikely to return to the previous abundant state, especially when the market lacks supporting information,” it said.
“The weak cash flow in the market and the concerns over the Omicron variant has cast a cloud on the indices' gaining prospects this week,” it said.
“However, in the short term, VCBS still expects that the movements of the indices in the next few weeks will gradually stabilise and consolidate the accumulation zone around 1,440-1,450 points,”
According to VCBS, this period will be more suitable for investors who follow a short-term trading strategy rather than a long-term investment practice.
“A new price level is gradually being established since the VN-Index surpassed 1,400 points,” it said.
“Investors may consider disbursing a small proportion to gradually accumulate stocks with good financial foundations and positive growth potential, based on the business results of listed companies in the last quarter of 2021,” VCBS recommended.
Banking stocks fell the most last week with notable losers including Vietinbank (CTG), down 3.8 per cent, Asia Commercial Bank (ACB) falling 5.9 per cent, Military Bank (MBB), declining 6.6 per cent, Techcombank (TCB) dropping 7 per cent, Vietcombank (VCB) down 7.1 per cent, Bank for Investment and Development of Vietnam (BID) down 7.6 per cent, Saigon-Hanoi Bank (SHB) falling 7.8 per cent, and VPBank (VPB) down 8.9 per cent.
According to Saigon-Hanoi Securities Joint Stock Company (SHS), it is clear that the market trend and sentiment are weakening and the VN-Index may need to step back to re-check support areas to find bottom fishing demand. — VNS