Stock market commentary 7/29: VN-Index hits new peak to celebrate 25 years of Vietnamese market

VN-Index surpasses historical mark of 1,557 points

VN-Index increased sharply by 26.29 points (+1.72%), closing at a record level of 1,557.42 points on the 25th anniversary of the establishment of the Vietnamese stock market.

Market liquidity exploded with total matched volume on HSX reaching 1,788 million shares, up 27% compared to the previous session, with a transaction value of VND44,320 billion.

Market breadth was positive as 17/18 sectors gained points, led by Financial Services (+5%), followed by Industrial Goods & Services and Construction & Materials. The Oil & Gas sector recorded a slight correction.

Securities companies unanimously give positive assessments

Many securities companies have given optimistic assessments about the market outlook in the coming time:

BSC Securities: Maintain positive assessment, VN-Index still has the momentum to continue conquering new peaks. The increase is led by Financial Services, Industrial Goods & Services and Construction & Materials.

Phu Hung Securities: Confirming that the momentum for increasing points is still there when VN-Index closed at the session high, showing good buying power. Despite the differentiation between industry groups, technical indicators are improving, consolidating the upward momentum. The next resistance target is set at 1,580 points, while short-term support is raised to 1,490 points.

MAS Securities: The short-term outlook for the market is positive, with the technical score remaining high (+5). The securities, real estate and banking sectors are the main drivers helping the index set a new record.

Yuanta Vietnam Securities: The market is forecast to continue to maintain its upward momentum, with the VN-Index possibly challenging the 1,567 point level. Hot money is operating strongly in the group of small and medium-cap stocks.

TPS Securities: VN-Index is expected to maintain its upward momentum and may reach 1,600 points according to the Cup & Handle pattern theory. At the same time, VN30 index is also forecasted to have the potential to reach 1,715 points after a successful breakout.

Investment strategy in session 7/29

Phu Hung Securities suggests a general strategy of increasing the proportion of stocks, considering taking advantage of corrections when the market cools down to re-test old peaks. For new purchases, stocks that have just escaped the mid-term price range are considered potential options. Priority industry groups include Banking, Securities, Real Estate, Public Investment and Utilities (Electricity).