After a volatile trading session on August 5, the VN-Index made an impressive recovery, increasing nearly 2% in today's session, August 6. The increase was further expanded at the end of the session and spread to most sectors, helping the index surpass the psychological mark of 1,200 points.

At the end of the session, VN-Index increased by 22.21 points (+1.87%), closing at 1,210 points; HNX increased by 3.75 (1.68%), to 226.46 points; Upcom increased by 1.43 points, to 92.22 points. Market liquidity decreased sharply compared to the previous session when the transaction value on HoSE only reached about 16,300 billion VND.

After a series of consecutive declines of VN-Index, the strong recovery session on August 6 brought hope to investors. Will the market continue to increase on August 7 and should we buy stocks to average the price?

Mr. Vo Kim Phung, Head of Analysis Department - BETA Securities Company, commented that the selling pressure has slowed down and the demand for buying stocks at the bottom has helped the market recover. However, it is worth noting that the liquidity in the market has weakened, down 34.88% compared to the previous session, warning investors to be cautious because the cash flow has not really entered the market. Not to mention, foreign investors continued to net sell more than 730 billion VND, which is still a significant pressure on the market.

"Investors should avoid acting too hastily, need to be patient and wait for signals confirming the new trend," Mr. Phung assessed.

Experts from Vietnam Construction Securities Company (CSI) also said that despite the positive performance in the session of August 6, the momentum for the increase has not been confirmed. Investors should not rush to increase the proportion of stocks; limit new purchases in stocks that are increasing in points. It is necessary to continue to prioritize observation and patiently wait for more signals to confirm the reversal. The technical recovery is expected to reach the 1,245 point mark.

Meanwhile, Mr. Barry Weisblatt David, Director of Analysis - VNDIRECT Securities Company, viewed the market's decline on August 5 as a good buying opportunity, with expectations that the market will improve by the end of 2024.

Profit growth in the second quarter of 2024 accelerated compared to the previous quarter and reached 15% over the same period. In a positive scenario, the VN-Index is forecast to close 2024 above 1,400 points, corresponding to a P/E ratio of 14.8 times is feasible.