The Vietnamese stock market showed resilience on February 14, 2023, with the VN-Index working to recover from previous declines. According to various securities firms, the index is heading toward key resistance levels, exploring whether it can breach the 1,275 to 1,280-point range.
The market's recovery momentum has shown signs of improvement, with Phu Hung Securities stating, "VN-Index continues to recover with improved momentum, heading toward the resistance area of 1,275 - 1,280 points." The VN-Index had previously encountered hurdles, dipping close to the 1,260-point level during the early trading session before rebounding.
Despite some unfavorable macroeconomic news, the stability of the Vietnamese stock market has persisted, with sectors such as fertilizers and textiles leading the recovery. TPS Securities reported, "Despite some adverse macroeconomic information, the market remains stable with short-term support levels proving effective," as trading remained within the range of 1,263 to 1,270 points.
The index closed the trading day on February 13 at 1,270.35 points, up by 3.22 points or approximately 0.27%. Yuanta Securities shared optimism, predicting, "The market could see upward momentum, testing the resistance level of 1,280 points soon," indicating the potential for a bullish run should market conditions stabilize.
Throughout the trading session, the VN30 index, which reflects the performance of large-cap stocks, struggled to maintain positive engagement, primarily due to notable selling pressure. The focus shifted toward mid-cap and small-cap stocks, which appeared to attract more investor attention during the session.
Following the turbulent trading experienced on February 12, the VN-Index experienced this reversal of fortunes, bolstered by the increasing appetite for stocks within the mid-cap sector. "The VN-Index continued to consolidate around the 1,265-point threshold today and closed at 1,270.35 points," noted analysts at BSC Securities.
The overall market breadth was relatively balanced, with 16 of 21 industry groups showing gains. Leading the charge were sectors such as fertilizers, which jumped by 4.1%, and textiles, which saw increases of 1.51%. Conversely, the retail and telecommunications sectors faced selling pressure, dropping by 1.74% and 1.49%, respectively.
Trading volume reflected cautious investor sentiment, with total liquidity on the HSX reaching approximately 463 million shares, even as foreign investors continued to sell off shares, accumulating net selling of 233 billion dong. Notably, larger companies like VNM and MWG were targeted for net sales, raising concerns about persistent selling pressures from overseas investors.
Nevertheless, there are signals of renewed interest from foreign investors toward select stocks. According to reports, investors noted increases for companies like DPM and MSN, which gained 44 and 33 billion dong respectively. These fluctuations suggest there may be opportunities present as investors adjust targets amid the market's movements.
Analysts have emphasized the importance of watching the VN-Index's performance around the key 1,275-point resistance. Vietcap Securities mentioned, "The market requires more directional candles along with supportive liquidity to break free from this consolidation phase," reflecting the need for clear trends for investors to act decisively.
A mixed sentiment continues to run through the market as investors assessed short-term dynamics and long-term trends. For investors, strategies are advised to adapt through these phases of market oscillation, considering profit-taking on stocks approaching their target levels and remaining vigilant about the key resistance levels to gauge potential breakout opportunities.
Market participants are optimistic but cautious, noting the balance between overcoming recent declines and establishing durable upward momentum. With analysts keeping watch for potential resistance breaches, investors are encouraged to maintain close observation on both macroeconomic indicators and sector-specific trends for informed trading decisions.
Looking ahead to February 14th, it seems feasible for the VN-Index to continue its ascent toward the resistance levels between 1,275 and 1,280 points. While the market experiences fluctuations, rooted strategies should provide insight and adaptability to seize momentum, should it manifest. Overall, the performance showcases the underlying strength of Vietnam's market framework during periods of uncertainty, and stakeholders remain poised to capitalize on forthcoming trends.