Stocks are going through turbulence

The stock market closed the weekend session with a decrease of nearly 10 points due to profit-taking pressure due to the amount of cheap stocks in accounts, pushing the VN-Index to the lowest level in 13 trading sessions but still in a fairly safe price range of 1,260 - 1,265 points.

In the market stocks group, the focus is on Quoc Cuong Gia Lai Company (QCG) shares. After the news of the temporary detention of General Director Nguyen Thi Nhu Loan, QCG shares were sold off massively. At the close, QCG fell 6.97% to VND9,070/share with a matched volume of 1.6 million units and a floor selling surplus of 3.5 million units. This is QCG's 6th consecutive decline, with a total decrease of nearly 26%.

The remaining stock groups on the market all decreased. Of which, the banking group reversed and decreased slightly by less than 0.5%, due to pressure from large codes. However, the banking stock group still maintained its vibrant heat.

Despite net buying of nearly VND500 billion worth of SBT shares, with strong selling pressure on bluechip stocks, foreign investors quickly returned to net selling of more than VND360 billion in the session of July 19.

Looking back at the first 3 weeks of July 2024, VN-Index had a recovery period, but slowed down when the index faced the 1,300-point threshold and continuously adjusted due to profit-taking pressure in the trading session last week.

The decrease in liquidity also shows that many investors are cautious and do not really believe that the VN-Index will break out, especially in the context of a huge amount of money having to balance the selling pressure of foreign investors. Foreign investors have net sold more than 52,000 billion VND in the first 6 months of 2024 and continued to sell in the first days of July.

However, up to now, domestic demand has supported prices very well, without panicking due to foreign divestment activities. Experts assess that this is only a psychological threshold, hindered in the short term, while in the medium term there are many supporting factors to break out to higher points.

The growth momentum of the stock market at the end of 2024 will mainly come from the strong economic recovery and the business results of listed enterprises are forecast to grow well from 15 - 22% compared to 2023. However, the stock market still faces many risks, especially the VND exchange rate and international macroeconomic factors.

Dr. Nguyen Duy Phuong, Investment Director of DG Capital, said that from now until the end of 2024, the expectation that the Fed will lower interest rates in September, thereby relieving pressure on exchange rates, along with the prospects of continued growth in profits of listed companies, will be the main support for the market.

In addition, foreign net selling in just over the past 6 months and the majority of non-financial stocks being overvalued will be major barriers to the Vietnamese stock market. Therefore, the view is that the risk assessment is still mixed and the stock market is not expected to be too positive in the second half of the year, but will likely tend to be differentiated between industry groups and stocks, Dr. Phuong stated his opinion.

Source: https://laodong.vn/kinh-doanh/chung-khoan-dang-di-qua-vung-nhieu-dong-1369040.ldo