Stock Market September: Continue to accumulate in an upward trend
(Baonghean) - The Vietnamese stock market closed the last trading session of August at 989.54 points, up 0.25% compared to the previous week.
In August, the VNINDEX recorded an increase of 3.47% compared to the previous month, ending a series of 4 consecutive months of adjustment. Will the market continue to maintain its growth momentum and surpass the 1,000-point threshold in September?
General context of the world macro
Regarding the global macroeconomic situation, the focus is still on the US-China trade dispute. Vietnam is a small market, so the negative impact of the US-China trade war is not too great. The trade war only changes the path of goods, not the nature of the market. Supply still meets demand, but the level of efficiency is reduced mainly due to tax costs, logistics, and relative advantages between countries.
In the long term, Securities CompanyVNDIRECTbelieves that the industries that benefit are: (1) Agriculture & Aquaculture, (2) Industrial Park Real Estate due to enterprises located in China opening more factories in Vietnam for export. These conditions will only occur when Vietnam continues to maintain a stable macro economy, Agriculture & Aquaculture enterprises meet Chinese quality standards and have significantly lower costs than the US.
Chance to surpass 1,000 points?
The VNINDEX maintained a steady and slow increase, more clearly defining the upward trend that has lasted since July. The positive point of this increase is that the trading volume increased on the up days and was at an average level on the down days, showing that money flowed in to buy and hold that buying position. Profit-taking activities still took place, but overall there was no distribution phenomenon. According toVNDIRECTThe above psychological stability is the basis for expecting this trend to continue above 1,000 points even if a correction occurs.
Ms. Nguyen Ngoc Linh - Head of Investment Consulting Department, Securities CompanyVNDIRECTComment: “From the perspective of technical analysis, in my opinion, the market trend in September is still moving in an upward accumulation channel. The indices and many large stocks are still moving positively towards testing the MA200 point zone, equivalent to the VNIndex around 1016 points. This development needs more time, it cannot break out strongly in 1-2 sessions right away and is interspersed with slight correction sessions”.
