[Market News 22/01/2024] BANKING GROUP PUSHES THE INDEX PAST RESISTANCE

Some important notes:

– The VN-Index surpassed the 1,180 resistance level thanks to the breakthrough of the banking sector. Thus, after a sideways consolidation period, the banking sector continues to fulfill its role of pushing the index. This remains the main leading group in the current period and is consistent with the early recovery cycle we previously shared.

– Foreign investors made net purchases for the 7th consecutive session, marking their largest net buying day to date. Additionally, in the derivatives market, foreign investors also made very strong net purchases of futures contracts, indicating they are betting on the market’s current uptrend cycle.

– The current negative information is that the exchange rate is trending upwards and approaching its old peak from 2023. However, our observations suggest that there may not be any short-term policy changes from the State Bank of Vietnam (SBV). According to the principle that as long as policies remain unchanged, the increase in the exchange rate is not yet an overly negative event.

– The price increase model of BID and VCB also suggests a similar pattern for other banking stocks at this time.

– Index forecast for January 22, 2024: Statistics show that the index closed higher, but the closing price was lower than the opening price.

– Recommended stock: CSV.

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SOURCE: AAS RESEARCH