The last trading session recorded the portfolio restructuring activities of ETF funds - a factor that often strongly affects market supply and demand. However, contrary to expectations of a vibrant trading session, cash flow tended to "stand on the sidelines", causing the market to become sluggish and lack the momentum to recover.
Selling pressure was widespread, especially in pillar stocks. Large-cap stocks such as GAS, POW, PPC, BWE... all fell, along with the weakening of banking and securities groups, putting significant pressure on the index. VN-Index lost more than 8 points at many points during the session. Obviously, the absence of leading stocks was the reason why the market could not bounce back despite some recovery efforts.
A rare bright spot came from the information technology group. FPT increased by 2.4%, SMT increased strongly by 4.6%, showing that demand is still present in stocks with good fundamentals.
Notably, HQC stock, a small-cap stock, unexpectedly broke through the ceiling with a liquidity of more than 16.3 million units, receiving a large demand from both domestic and foreign investors. This shows that cash flow is still looking for opportunities in stocks with unique factors, despite the general market trend weakening.
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| The notable focus is on small stock HQC that suddenly makes big waves. |
As of the end of the session on March 21, foreign investors had a week of net selling with a total value of up to 4,319 billion VND, a worrying number for domestic investors. The codes that were "dumped" the most include: FPT, TPB, SSI, MWG, VPB, showing a change in foreign investors' taste.
FPT shares alone were net sold for nearly VND2,000 billion - although this is a code with positive prospects in the technology industry. The continuous withdrawal of foreign capital is a big minus point in the context of the market lacking clear supporting factors. Meanwhile, the securities company's self-trading sector tends to go in the opposite direction when continuing to net buy, focusing on stocks such as: SSI, SHB, TCB, VHM, showing the differentiation in expectations of large investor groups.
From a technical and cash flow perspective, the current move can be seen as a necessary correction after a strong rally since the beginning of the year. The market has increased by more than 4.3% compared to the end of 2024 and surpassed the important psychological threshold of 1,300 points, a level that has failed many times before.
According to Mr. Han Huu Hau, VPS securities analyst, this correction is short-term and necessary for the market to accumulate. Profit-taking pressure after a strong increase is normal. The important thing is that the money has not been completely withdrawn from the market but is only circulating between industry groups. The rise of the technology group and small speculative stocks like HQC is proof.
In addition, the period from late March to early April 2025 may continue to witness investor caution as they wait for information on new tax policies from the US as well as first-quarter business results of listed companies.
Although the VN-Index is in a correction phase, experts still maintain a positive view for the medium and long term. This year's expected corporate profits to grow by 17-20%, the KRX system is about to operate, along with expectations of a market upgrade this year, are strong supporting factors for the return of cash flow.
According to securities expert Le Thi Hong Nhung, “if we look further, the market can still reach the target of 1,400 points by the end of the year, especially when entering the Shareholders' Meeting season from April to May and expecting foreign cash flow to return after restructuring the portfolio.”
The current market is a test of investors’ psychology and strategy. For long-term investors, this is an opportunity to restructure their portfolios, choosing stocks with good fundamentals, less affected by foreign capital flows and with room for growth in the second quarter.
The short term may be unpredictable, but with a medium-term vision, the market remains attractive if you are patient and choose the right opportunity. As Mr. Hau commented, “it is important for investors to stay calm, not panic about short-term fluctuations but focus on stocks with long-term growth potential.”
In a volatile market, closely monitoring technical indicators and macroeconomic information will help investors make more informed investment decisions.
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