The market will continue to extend its recovery this week but also face difficulties because supply pressure may increase again when the market approaches a new resistance zone of 1,160 - 1,170 point area.

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index gained 0.27 per cent to close Friday at 1,154.73 points.

It had risen 2.32 per cent last week.

An average of more than 617 million shares were traded on the southern bourse during each session last week, worth VNĐ13.9 trillion (US$568 million).

"Although there were cautious developments and a fairly deep fall during Friday's session, in general, the supply at low prices was not drastic, shown by quiet liquidity when the market retreated," said Việt Dragon Securities Co.

"This move helped the market reverse and return above the 1,150-point threshold. With this effort to increase points, it is likely that the market will continue to extend its recovery in the near future."

"However, the recovery will continue to face difficulties because supply pressure may increase again when the market approaches a new resistance zone, such as the 1,160 - 1,170-point area."

"Therefore, investors need to observe and evaluate supply and demand when the market recovers. Temporarily, it is still necessary to consider the market's recovery ability to restructure the portfolio in a way that minimises risks."

Current exchange rate pressure is only temporary and will not reverse the downward trend of deposit and lending interest rates, according to Đinh Quang Hinh, Head of Macro and Market Strategy, Analysis Division at VNDIRECT Securities Joint Stock Company (VNDIRECT).

In the context that deposit interest rates have decreased sharply and reached the bottom level during the COVID-19 period, other investment channels such as real estate and corporate bonds are still facing many difficulties; the stock market will still be the priority choice for current cash flow.

Besides, in the coming weeks, the market will be supported by information about the third quarter of 2023 business results of listed companies.

"Economic results in the third quarter of 2023 will be a supporting factor for the market trend," he told Việt Nam News.

During the week, the industrial park and rubber real estate stocks had positive developments, such as IDICO Corporation - JSC (IDC) up by 11.7 per cent, Sonadezi (SZC) rising by 9.6 per cent, Đồng Phú Rubber Joint Stock Company (DPR) gaining by 9.06 per cent, and Thành Đạt Investment Development JSC (DTD) growing by 8.93 per cent.

Oil and gas stocks also increased in price, such as PetroVietnam Drilling and Well Services Corporation (PVD) up by 10.27 per cent, Petrovietnam Transportation Corporation (PVT) up by 8.51 per cent, and PetroVietnam Technical Services Corporation (PVS) rising by 8.42 per cent.

"Upward movements are dominating the short-term trend of the VN-Index. This week, the index will test the important resistance mark of 1,159 points," said Phạm Bình Phương at Mirae Asset Securities Joint Stock Company.

"Market liquidity has been at a low level for the past three months, but this is not necessarily a negative sign for the market's recovery," the expert said. VNS