In the trading week before the September 2 holiday, the stock market recorded notable supportive information about policies. However, the expectation that the VN-Index will surpass the 1,300-point mark remains open. At the same time, information about the Ministry of Finance and the Securities Commission legalizing manipulation behavior is also attracting public attention.
Domestic stocks just had an impressive trading week with 4/5 sessions increasing points.
Domestic stocks have just had an impressive trading week with 4/5 sessions increasing. VN-Index is heading towards the old peak of 1,300 points, however, market sentiment has become more cautious due to positive information that has partly reflected in the recent impressive increase.
Mr. Tran Hoang Son, Director of Market Strategy, VPBank Securities Joint Stock Company, commented that trading in the days before the September 2 holiday is quite important for domestic stocks, with the value of testing demand after the VN-Index recovered 100 points since the beginning of the month. Investors are likely to take profits in the 1,285 - 1,305 point range, many industry groups give profits of 7-10%.
Accordingly, this week, the market may slow down, investors should choose the right buying point, waiting for a breakout signal after the holiday. The current supporting factor, bringing hope for the world financial markets as well as Vietnamese stocks to recover, is the US Federal Reserve (FED) preparing to loosen monetary policy.
VN-Index is facing strong resistance at the 1,290 - 1,300 point range.
VNDirect Securities Corporation's analysis team believes that the FED will almost certainly cut interest rates at its September meeting, but the market's current major concern is still the level and intensity of the FED's cuts later this year. The market is expecting the FED to cut about 0.75-1% of operating interest rates from now until the end of the year. If the FED proposes a more cautious plan, it could impact and adjust investors' and market's expectations.
“The VN-Index is facing strong resistance at the 1,290 – 1,300 point range. Investors should limit new disbursements for stocks that have recovered strongly in this range, maintain a moderate stock portfolio and limit the use of high leverage to manage risks. If the market corrects to the support range around 1,255 – 1,260 points, it will open up opportunities to accumulate more stocks…”, VNDirect recommended.
Experts from Vietcombank Securities Joint Stock Company (VCBS) believe that after a good increase, the VN-Index will likely accumulate again for 3-5 sessions before heading towards the 1300 point area, so the market fluctuations will be a good opportunity for investors to increase their proportion at a good discount price. Therefore, we recommend that investors continue to maintain their portfolios and consider disbursing more for stocks in sectors such as banking, real estate, and securities.
Amend the law, take strong action to stop manipulation
Domestically, a notable development that has attracted public attention is the Ministry of Finance's proposal to amend and supplement a number of provisions of the Securities Law 2019, which is attracting investors' attention. In particular, the draft proposes to legalize stock market manipulation. This is an important highlight with the expectation of bringing confidence to the market, investors and organizations.
This is one of the few cases of violations that have been criminally prosecuted, while there are countless cases where individuals have only been administratively sanctioned. For example, in May 2024, four individual investors, Mr. Mai Huu Phuc, Ms. Vo Nhu Thao, Ms. Do Thuy Tien and Mr. Tran Minh Hoang, were administratively fined VND 6 billion by the State Securities Commission for using multiple accounts to trade PSH shares, an act of stock market manipulation.
From the above incidents and through monitoring and inspection, the Ministry of Finance recently determined that it is necessary to legalize the regulations on manipulation in Decree 156 to ensure compliance with the reality happening in the market.
Source: CafeF
