Similar to the previous week, the stock market continued to decline last week. The correction, which occurred as the VN-Index hit a new record, wasn't entirely unexpected given the early signs of volatility. Overall, the market still accumulated more than 15 points throughout the week.

Generally, market breadth began to tilt toward the negative as selling pressure increased sharply in most sectors such as seafood, steel, fertilizer, chemicals, technology, securities, textiles, and construction. However, some groups, like banking and oil and gas, remained stable.

Liquidity frequently remained above 2 billion USD per session, but the average level decreased by 13% compared to the previous week. In contrast to the strong demand from domestic investors, foreign investors continued to sell strongly, totaling over 7,600 billion VND.

According to Vietcombank Securities (VCBS), the relative strength index (RSI) has reversed downwards and retreated from the overbought zone on the daily chart. Therefore, the market will likely continue to have short-term corrections, with the nearest support zone expected at 1,600-1,610 points. On the hourly chart, the moving average convergence divergence (MACD) and RSI continue to point downwards, so the market is likely to continue correcting in the next trading session.

"Last week's correction is considered a necessary development for the market to regulate supply and demand and re-evaluate growth momentum after a period of rapid increase," the VCBS analysis team stated.

Investors are watching the electronic board at a securities company in TP HCM. Photo: An Khuong

Investors are watching the electronic board at a securities company in TP HCM. Photo: An Khuong

Sai Gon - Ha Noi Securities (SHS) believes the VN-Index has signaled a peak in its rapid rise, ending the period of increased speculation and strong short-term leverage. The analysis team noted that the VN30 index is under strong selling pressure at 1,880 points, while the VN-Index faces selling pressure around 1,700 points. With these developments, the HoSE's index may continue to be under pressure to correct to around 1,600 points.

During this peak speculation period, SHS recommends that investors closely monitor market developments. Positions and portfolios should be carefully evaluated, considering selling weakening stocks. After the period of rapid increase and strong selling pressure, short-term speculative positions will decline. The market will trade slower, and liquidity will gradually decrease.

Experts continue to remind investors to maintain a reasonable proportion. Investment targets should be stocks with good fundamentals, leaders in strategic industries, and those showing exceptional growth within the economy. "The market will return to fundamental valuation factors and be based on expectations for third-quarter business results after the period of rapid growth," SHS said.

However, not all analysts offer a negative perspective. Vietcap Securities believes that while the VN-Index corrected sharply, some of the decline narrowed towards the end of the session on 22/8, and the index still ended the week higher. Therefore, they predict a technical rebound in the next trading session, retesting the resistance zone around the 5-day moving average (MA5) at 1,660-1,665 points.

Nevertheless, Vietcap notes that a recovery accompanied by bottom-fishing and high divergence could increase the likelihood of the market correcting to 1,600 points in the near future.

Similarly, Beta Securities (BSI) believes that one correction session is not enough to change the general trend as the VN-Index still maintained its weekly gain, although the margin has been significantly narrowed. They point out the bright spot lies in the banking group, which continues to attract cash flow and maintain the market's rhythm during times of volatility. According to BSI, the stability and resilience of this group of stocks are becoming a "beacon" guiding investor expectations, contributing to reinforcing confidence in the future outlook.

In summary, according to this analysis team, the stock market maintains its upward trend, but the potential for strong breakthroughs may be somewhat limited. Along with that, the market is likely to experience fluctuations that will test investor psychology in the short term. Therefore, BSI advises investors to proactively take profits on stocks that have increased rapidly and take advantage of corrections to restructure their portfolios to reduce risk and maintain balance.

For medium and long-term investors, they can patiently observe and wait for corrections to accumulate leading stocks with good fundamentals, outstanding growth potential, or compelling individual stories. The experts emphasize: "This is the time for careful selection, rather than chasing the uptrend."

Tat Dat