Market turbulence is difficult to predict for stock investors.

At the end of yesterday's trading session, August 9, VN-Index increased by 15.32 points (1.27%), to 1,223.64 points. However, market liquidity decreased compared to the previous trading session, with a value of more than 16,000 billion VND.

The unpredictable market is what experts are concerned about. In a newly released strategic report, ABS Securities Company found that since the end of July, although Vietnam's macro economy has been positive, negative information in the world has had a strong impact on the world and Vietnam's stock markets, and is expected to have a negative impact on the Vietnamese stock market in the coming time.

The second quarter business results of listed companies show a positive recovery momentum continuing from the previous quarter. In terms of valuation, the P/E of the VN-Index has decreased from 14.1x at the end of June to 13.8x at the end of July, lower than the average of 14.14x of this index in the past year. The expected P/E for the whole year of 2024 is lower because the business results of the whole market are forecast to continue to recover in the second half of the year. Large-cap stocks in the VN30 are currently valued at P/E of 12.58x, much lower than mid- and small-cap stocks in VNMID (16.73x) and VNSML (17.38x).

ABS Securities Company has given its opinion that the index will continue to decline sharply in the first sessions of August to the 1,185 point mark. With the current situation, ABS has given 2 scenarios for VN-Index in August.

Scenario 1, in case armed conflicts are resolved and do not escalate, if VN-Index maintains the 1,166 mark, it will form a sideways accumulation structure.

Scenario 2, in the opposite case, the scenario of a downward price adjustment in August is prioritized. If the closing price of the week fails to maintain the 1,166 point mark, the general market will continue to adjust down to the support levels 3 of the analysis report of previous months at the price range of 1,140 - 1,080 +/-. The adjustment phases can take place with quite fast and strong intensity. At that time, the market's P/E for the last 12 months is expected to decrease to a quite attractive level of 12.6x - 11.9x.

Therefore, in August, experts recommend that medium-term risk management be given top priority. Trading stocks during technical recovery phases should be carefully considered at the support zone of the VN-Index and specific stocks, when there are specific signals confirming the completion of the price model.