Trading week is flat, foreign investors stop net selling
With investors taking short-term profits and cautious sentiment about the US CPI information, the stock market witnessed a week of almost flat trading. The VN-Index ended the week at 1,154.7 points, unchanged from the previous week. Meanwhile, the HNX-Index fell 1.1% to 230.31 points and the UPCOM-Index fell 1.1% to close at 86.9 points.
State-owned banking stocks VCB (+2.9%), CTG (+8.2%), BID (+3.4%) were the main factors leading the recovery. On the contrary, stocks VHM (-4.2%), GVR (-6.4%) and GAS (-2.7%) put pressure on the general index.
Last week, liquidity increased sharply by 25.5% compared to the previous week, reaching VND18,664 billion/session. This shows the positivity of the market when investors traded actively again. In addition, foreign investors stopped net selling and switched to net buying slightly VND22 billion on all 3 exchanges. They net bought VND234.7 billion on HOSE while net selling VND19.3 billion on HNX and net selling VND193 billion on UPCOM.
Lack of leadership when entering the information valley
Speaking with Lao Dong, Mr. Dinh Quang Hinh - Head of Macro and Market Strategy Department of VNDIRECT Securities Company - predicted that the tug-of-war trend of the stock market could continue into the next trading week when the cash flow has not yet reached consensus and spread among industry groups.
"The recent increase in stock indices has been mainly driven by banking stocks. While other sectors have not shown signs of attracting cash flow. With the banking group likely to see profit-taking pressure in the coming trading sessions, the lack of an alternative leading group in the market may make it difficult to maintain the market's upward trend.
At the same time, the market is also preparing to enter a low-information support zone before the Lunar New Year, while some emerging risk factors may affect the general trend. Specifically, the recently announced US inflation figures are higher than expected, which will reduce the excitement of international markets. Domestically, gold prices are still high, along with the unexpected return of exchange rate pressure in recent sessions, which is a risk factor that needs to be observed," Mr. Hinh assessed.
On the above basis, short-term investors need to adhere to discipline at the present time, proactively reduce the proportion of stocks to a safe threshold (about 50% of stocks) and limit the use of leverage. It is necessary to carefully observe market developments at the nearest support zone of 1,130 - 1,140 points before making new decisions to buy or increase the proportion of stocks.
Experts from SHS Securities Company said that the market is moving positively but the increase has slowed down and fluctuated within a narrow range. After forming a short-term increase, VN-Index is returning to test the support level of 1,150 points and there may be further fluctuations.
Short-term investors need to be cautious when VN-Index has not confirmed a successful support test. For medium and long-term investors, the market is gradually consolidating and forming an accumulation foundation, but this process will take a long time. Medium and long-term investors can completely disburse but with the view of buying and accumulating gradually because the time to form a new uptrend will be quite long.
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