The market is forecast to witness slower gaining momentum in the near future and explore supply and demand in the area of 1,220 - 1,237 points, before forming a more specific trend.

The benchmark VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) rose 0.29 per cent, to close the day at 1,227.36 points. It had lost 1.14 per cent last week.

“Liquidity decreased with the star candle, showing that supply is cooling near the support area of 1,220 points. With this signal, it is likely that market movements will slow down in the near future and follow the direction of exploring supply and demand in the area of 1,220 - 1,237 points before having a more specific signal,” said Việt Dragon Securities Co.

“Therefore, investors need to observe supply and demand developments in the exploration area and reassess the market state. Temporarily, it is still necessary to keep the portfolio proportion at a reasonable level to prevent risks,” it said.

The market is struggling in a narrow range with the support zone being 1,205-1,215 points and the resistance zone being the old peak of 1,240-1,250 points, said Đinh Quang Hinh, Head of the Macro and Market Strategy Department, VNDirect Securities Company.

The market is currently expecting the Fed to pause interest rate hikes at its next meeting this week.

“We believe that the upcoming meeting is unlikely to cause major surprises and fluctuations for the market. Besides the Fed meeting, exchange rate developments are also something that investors are particularly interested in,” he told Việt Nam News.

The State Bank of Vietnam (SBV) increased the central exchange rate to VNĐ24,036 per US dollar on Friday, the highest level since 2011.

The sharp increase in exchange rates may be due to seasonal factors such as businesses increasing import-export activities to serve the last months of the year, abundant foreign currency supply from trade surplus and FDI disbursement, Hinh said.

Accordingly, investors can consider increasing the proportion of stocks when the market reaches the support zone of 1,205-1,215 points, and reduce the proportion when the market approaches the resistance zone of 1,240-1,250 points.

Investors should pay attention to prioritising portfolio risk management, maintaining a moderate stock proportion and limiting the use of leverage at this stage.

If the VN-INDEX index continues to rise to a higher threshold around 1,280 points, you can consider taking partial profits and waiting for an adjustment to buy back.

On the contrary, if the VN-INDEX index adjusts to the support zone of 1,200-1,220 points, you can take advantage of the opportunity to increase the proportion of stock portfolio.

The market was supported at 1,220 points and recovered slightly thanks to cooling supply. With this signal, it is likely that market movements will slow down in the near future and follow the direction of exploring supply and demand in the area of 1,220 - 1,237 points before having a more specific signal, said Việt Dragon Securities Co.

Therefore, investors need to observe supply and demand developments in the exploration area and re-evaluate the market state. Temporarily, it is still necessary to keep the portfolio proportion at a reasonable level to prevent risks. VNS