Is it better to buy stocks on a dip?

At the end of yesterday’s session, the Vn-Index closed at 1,502.34 points

The Vn-Index ended yesterday's session at 1,502.34 points, down 1.44 points (-0.1 percent), snapping a six-session winning streak after nearing the resistance zone at 1512-1522 points. Meanwhile, the HNX-Index ended the day at 462.10 points, up 0.75 points (0.16 percent ). On the HSX, the overall trading value was VND 28,037.90 billion, while on the HNX, it was VND 4,175.92 billion. On the HSX, foreign investors spent a total of VND 1,013.95 billion, while on the HNX, they spent VND 3.44 billion.

The poorest performers on the VN-Index yesterday were GAS, VHM, and VIC, which lost -1.29, 0.87, and -0.76 points, respectively. GVR, DGC, and SAB, on the other hand, had the best results, giving 0.76, 0.59, and 0.57 points to the index, respectively.

Six of the eleven sectors' stocks declined in yesterday's session. Energy (-1.48 percent) suffered the most losses, followed by PLX (-1.41 percent), PVD (-1.78 percent), and PSH (-1.78 percent) (-1.82 percent ). Utilities (-1.01 percent) were next, due to reduced GAS (-1.29 percent), BWE (-0.51 percent), and TDM prices (-0.81 percent ). On the other side, DGW (6.99 percent) and CMG (1.81 percent) helped technology (3.87 percent) become the session's biggest advancer.

The National Assembly Standing Committee passed a resolution on the environmental protection tax rate for gasoline, oil, and grease until the end of December 31, 2022, with 100 percent of the votes in favor on March 23, afternoon.

From the commencement date of this resolution (April 1, 2022) through the end of December 31, 2022, the government proposes the following environmental protection tax rates for gasoline, oil, and grease: Gasoline costs 2,000 cents per liter; diesel, mazut, and lubricant cost 1,000 cents per liter; grease costs 1,000 cents per liter; and kerosene costs 700 cents per liter. In comparison to current rates, gasoline (excluding ethanol), diesel, mazut, and lubricants are all cut by 50%, while the environmental protection tax on kerosene is reduced by 70%.

In terms of the budget impact, the administration estimates that gasoline, oil, and grease use in 2022 will be the same as it was in 2019. With the proposed environmental protection tax rates on gasoline, oil, and grease, it is expected that tax revenue for gasoline, oil, and grease will fall by around VND 29,035 billion per year for the entire year, reducing state budget revenue (including environmental protection tax and VAT) by around VND 31,938 billion per year (the average monthly revenue reduction is VND 2,661.6 billion).

The VN-Index, according to BVSC's analyst Tran Xuan Bach, will confront severe resistance at 1,512–1,522 points. In the coming days, the market is anticipated to receive correcting pressure, allowing stock groups to consolidate and build a new base in preparation for a breakout as the market enters Q2. The support zone for the Vn-Index is 1,470-1,480 points.

In terms of its short-term trend, the VN30 index is indicating a favorable shift. The strong resistance zone at 1,555-1,565 points, which corresponds to the upper channel of the medium-term sideways channel, will most likely be tested again. In the immediate term, however, this indicator will struggle to break through resistance near 1,510-1,520 points.

"In the coming sessions, the market is anticipated to be under pressure from corrections. However, we remain optimistic about the market's performance from now until the end of April. As a result, market corrections will be viewed as chances for investors to diversify their stock portfolios "Mr. Tran Xuan Bach expressed his thoughts.