[Market News 02/04/2024] POWER MASTER PLAN VIII ANNOUNCED, WILL IT BOOST STOCKS IN THIS SECTOR?

Some important notes:

– The VN-Index faced difficulties in breaking out strongly. This is a price gap area established on 6/5/2022, and typically upon returning, it acts as a significant potential resistance zone. Therefore, trading often requires a period of re-accumulation. The bright spot is the market’s differentiation, rotation, and many stocks setting new 52-week highs, recent highs, or all-time highs. Capital flow is directed towards stocks with strong business forecasts such as PTB, VCS, PLC, CSV… and this is usually a sign of sustainability.

– Foreign investors continued a net selling session of nearly 700 billion VND. Net selling focused on MSN, SSI, VNM, VCI, DGC, KBC, CTG… while net buying concentrated on the securities group, MWG, DIG, PDR, PVS, NVL, NLG, PVD, DXG, VGC… It is very difficult to determine when the current net selling cycle of foreign investors will end. From a capital flow perspective, if we consider the period since 2017 when foreign capital strongly flowed into the market, the divestment scale might need to reach another 1 billion USD before it can stop. As long as net selling does not create new lows from the start of the selling, market transactions remain positive. Furthermore, as previously shared, the market’s upward momentum from 2020 until now has come from domestic transactions.

– There is some concern that correction wave 4 has not ended and the index might retest the 1,240 point support level, with strong volatility likely to occur according to the cycle. Any shake-up at the beginning of April is a buying opportunity for investors.

– Index forecast for 2/4/2024: Statistics show that the index will rise with the closing price higher than the opening price.

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SOURCE: AAS RESEARCH