Foreign net selling pressure puts great pressure on the stock market

The stock market experienced a week of volatile trading, the efforts of buyers to pull up the index in the first two sessions of the week were unsuccessful as investors remained cautious at the strong resistance level of 1,290-1,300 points. The correction trend continued until the end of the week, with the VN-Index stopping at 1,280.75 points.

The VN-Index has fallen for three consecutive sessions with trading volume falling and remaining below the 20-day average. This shows that investors are increasingly cautious. In addition, foreign investors' continued net selling has made the index's situation more negative.

Foreign investors had a busy trading week but continued to increase net selling with a value of nearly 4,500 billion VND, double the previous week.

According to statistics on the HOSE floor, foreign investors net sold for 4 sessions and only bought a small amount of shares on July 11. In total, this group net sold 80.37 million units, with a total net selling value of approximately VND 4,501 billion, up 29.57% in volume and 94.96% in value compared to the previous week.

On the HNX, foreign investors were net buyers for 3 sessions and net sellers for 2 sessions. In total, this group net bought 1.36 million units during the week, down 38% compared to the previous week; the total value was net selling 4.68 billion VND, while the previous week net bought 98.77 billion VND.

Thus, last week, from July 8 to 12, foreign investors sold a net 80.29 million units on the whole market, with a total net selling value of VND 4,480.89 billion, up 32.56% in volume and more than 107% in value compared to the previous week (from July 1 to 5, net selling of VND 2,163.86 billion).

Experts from Maybank Securities Company believe that difficulties for the stock market will continue. The VN-Index is likely to fluctuate below 1,300 points in July 2024 due to foreign net selling, pressure on the VND and interest rate hikes in Vietnam.

However, Maybank Securities expects foreign net selling to gradually decrease in the coming months and will return to net buying from the second half of 2024 thanks to the outstanding growth of the US economy and the reduction of net inflow pressure from ETFs focusing on Vietnam.

Maybank Securities maintained its view that a 100 basis point interest rate hike would not derail Vietnam's economic recovery, and maintained its VN-Index target at 1,420 points.

Source: https://laodong.vn/kinh-doanh/ap-luc-ban-rong-cua-khoi-ngoai-gay-suc-ep-lon-len-thi-truong-chung-khoan-1365656.ldo