Stocks next week up or down?

There is absorptive demand at low prices

According to Rong Viet Securities Joint Stock Company (VDSC), the market closed the third consecutive week of decline with a relatively positive green color. The trading movement continued to show strong contention near the support of the price channel of 1,380 +/- 5 points of VN-Index and recorded a support signal of money flow in this area.

Notably, the group of stocks that have fallen sharply recently also started to have demand to absorb the number of stocks at low prices. With this move, the market’s recovery rhythm may continue in the near future. Therefore, VDSC believes that investors can expect the market’s recovery span to be expanded.

Will the positive developments in Friday’s session continue next week?

MB Securities Joint Stock Company (MBS) said that the domestic market had a session to end the week with a recovery after falling for 6 consecutive sessions. The market’s recovery at the end of the week was not due to strong cash inflow, instead it was the consensus in leading large-cap stocks such as banks, steel, real estate…; in which, the number of stocks hitting the floor was also less and foreign investors were still actively net buying in recent sessions.

The matching liquidity on HOSE increased to 22,954 billion dong compared to 19,412 billion dong yesterday and 24,400 billion dong in average last week. The increasing market liquidity shows that investors are looking for opportunities in the context of stocks with attractive discounts, so blue-chips (stocks of reputable companies with good financial status) solid, large market capitalization) was very active in the last session of the week (April 22).

MBS recommends that investors can continue to hold the portfolio and observe market movements at the support zone of 1,350 – 1,370 points. In an optimistic scenario, the market may recover to 1,425 points.

Saigon – Hanoi Securities Joint Stock Company (SHS) said that the market fell for the third consecutive week with a decrease of more than 9%. The last time that the market represented by the VN-Index fell for three consecutive weeks was in July 2021 with a decrease of 10.7%. After that, the market recovered and gained quite positively.

SHS believes that the happenings of the past week were relatively negative for the VN-Index when there were four consecutive dropping sessions and only one recovery session at the end of the week. This caused the VN-Index to lose the important technical support level around 1,420 points. Fortunately, the increased demand around the support level of 1,350 points helped VN-Index narrow the drop.

SHS believes that the 1,350 point level will be an important area to observe in the next trading week, but if this support can be maintained, the market may recover again, with the target as the resistance zone in the range. 1,400 -1,420 points.

Fear of a strong monetary policy tightening cycle

The US stock market witnessed a massive sell-off on April 22, when government bond yields hit a new record high and was a response to the Federal Reserve’s (Fed) plan in the coming weeks. accelerating interest rate increases.

The Dow Jones Industrial Average closed down 2.8% to 33,811.4 points, while the S&P 500 index fell 2.8% to 4,271.78. The Nasdaq Composite Index fell 2.6% to 12,839.29.

Yields on 2-year US government bonds closed up 2.71%, a new record high since December 14, 2018. During the session, there was a time when the yield increased to 2.78%, after closing the previous session at 2.69%.

Bond yields hit a record high a day after Fed Chairman Jerome Powell reiterated the possibility of a 0.5 percentage point rate hike in May, compared with the standard 0.25 percentage point increase. The Fed also announced a plan to raise interest rates 10 times.

One of the biggest concerns when interest rates rise is that companies will have to pay larger interest payments, which in turn can reduce investment. For the whole week, the S&P 500, Dow Jones and Nasdaq Composite indexes fell 2.7%, 3.9% and 1.9%, respectively.

World stocks are under great pressure from the strong trend of USD

In Asia, most stock markets also fell on the afternoon of April 22, after US Federal Reserve Chairman Jerome Powell signaled a cycle of strong monetary policy tightening. strong.

This session, Japanese stocks fell after “strong” comments from the Fed about its policy tightening plan. The Nikkei 225 index in Tokyo lost 1.63% to 27,105.26 points on the afternoon of April 22.

Korean stocks also could not escape the downtrend of regional markets in this session. The Kospi index in Seoul fell 0.86% to 2,704.71 points. Sydney, Jakarta and Mumbai markets also went down.

Meanwhile, the Chinese market is divided. Hong Kong stocks ended the session in the red, with the Hang Seng index down 0.21% to 20,638.52 points.

However, the Shanghai Composite Index in Shanghai rose 0.23% to 3,086.92 points as some travel restrictions to prevent the COVID-19 epidemic in China were eased.

In addition, the country’s securities regulator also pushed banks and insurance companies to buy more shares to help prop up prices in the market – although the impact was quite small.

According to PV