A upswing for the VN-Index is expected in April

To reduce risk, investors should hold current positions and use a trailing stop loss order. Photo: Quoc Tuan

The VN-Index climbed by 17.94 points (1.20 percent) as three out of five sessions ended in the green, with 164 advancers and 225 decliners. It concluded the previous week at 1,516.44 points. The index's best performers were FPT, VNM, and MWG, which added 3.53, 3.46, and 3.10 points to the index, respectively.

Meawhile, HPG, STB, and FLC were the worst performers, losing -0.80, -0.70, and -0.68 points, respectively, from the Vn-Index. The average trading value each session was VND 26,710.48 billion. On the HSX this week, foreign investors purchased a total of VND 806.31 billion.

The HNX, on the other hand, finished the week with a loss of -7.65 points (-1.66 percent), concluding at 454.10 points. With 101 advancers and 206 decliners, the HNX-Index lost three out of five sessions. The worst performers were HUT, CEO, and L14, with -3.68, -1.36, and -0.71 points deducted from the index, respectively. NVB, IDC, and PTI, on the other hand, were the best performers, adding 2.41, 2.01, and 0.50 points to the index, respectively. The session's trading value was VND 3,987.06 billion. Foreign investors sold a total of VND -27.38 billion on HNX this week.

The VN-Index was trading at 1,523 points this morning, with 350 advancers and 380 decliners.

The VN-Index was trading at 1,523 points this morning.

The Vietnam Purchasing Managers' Index (PMI) was 51.7 points in March 2022. After a period of decrease due to the impact of the COVID-19 pandemic, the index rose over the neutral level of 50 points, indicating that business conditions had improved for the 6th consecutive month. However, over the recent 6-month growth period, this was the least substantial improvement.

The present wave of the COVID-19 pandemic in Vietnam is the main reason for the slowdown in progress. One of the most significant repercussions on businesses has been widespread infection among workers, which has resulted in the first drop in employment in four months. Companies were unable to maintain production due to a labor shortage, and output declined for the first time in six months.

In the meantime, inflationary pressures contributed to a drop in output, although it was only a little drop because some businesses increased output in proportion to the increase in new orders. After the crisis between Russia and Ukraine erupted, the cost of oil and gas soared, pushing input costs to an 11-year high. This global instability put an end to any plans.

The VN-Index has been moving in a modest sideways trend near 1,470-1,512 points in recent sessions. Another small red candlestick with a spinning top appeared, indicating that the market is continuing to accumulate in the short term. Nonetheless, the market and many industries are forming new price levels as a result of this accumulation phase. In April 2022, this is likely to be a stepping stone for beneficial advances.

The VN30 index is nearing a resistance zone of 1,512–1,518 points, which corresponds to the median line of the medium-term sideways price channel. With favorable transitions in several of the VN30 basket's companies, particularly in the banking sector, BVSC believes the index will shortly break above the aforementioned resistance zone, initiating an uptrend in the top half of the market.

In April, BVSC analyst Tran Xuan Bach predicted that the market would undergo a short-term rise. As a result, investors should take advantage of market fluctuations and corrections to increase their stock exposure. To reduce risk, investors should hold current positions and use a trailing stop loss order. Blue-chip stocks with strong fundamentals and promising 1Q22 business prospects should be prioritized. At the current price range, investors might consider buying stocks in the banking sector, as this is a sector with little technical risk and a favorable base valuation. The profit prognosis for banking stocks is likewise predicted to be positive in the first quarter.