After two consecutive months of falling more than 220 points, the stock market had a better start to November. The VN-Index recovered today with improved liquidity, closing the session up 11.47 points, or 1.12%, to 1,039.66 points. The HNX-Index gained 3.48 points, or 1.69%, to 209.65 points.
Market breadth on the two listed exchanges improved positively after many sessions of strong selling pressure. Liquidity on the two exchanges reached VND14,543 billion, down 13.27% compared to the previous session and still below average. This shows that the recovery is still uneven, with many codes and groups of codes recovering with poor liquidity.
Foreign investors net sold 107 billion VND on HOSE, mainly in real estate and retail groups. They net bought quite dramatically on HNX with a value of 201 billion VND, focusing on SHS code.
Regarding specific developments, the group of financial services and securities stocks has recovered well with SHS (+9.30%), MBS (+8.12%), CTS (+6.96%), AGR (+6.81%)... The steel group is also quite positive compared to the general market when the business situation improves and steel prices recover.
Most real estate stocks were under strong selling pressure at the beginning of the session but reversed at the end of the day with declining liquidity such as CII (+4.68%), CEO (+2.54%), DXG (+1.20%)... Only VHM (-1.41%) was still under strong selling pressure and had sudden liquidity.
According to SHS Securities Company, today's recovery session is meant to relieve the market's panic after many previous sharp declines. However, because the market is in the oversold zone, the short-term recovery may only be a technical recovery and will not change much of the inherent state.
In the short term, SHS predicts that VN-Index will likely move in the 1,015 - 1,075 point range to reach a new balance zone. The nearest resistance level is at 1,045 points.
VCBS Securities Company said that on the hourly chart, indicators such as MACD and RSI have shown signs of reversal in the short term. In case the market is positive, this can completely be a new bottom of the market. However, the general market is still in a downtrend, so investors should consider disbursing 20-30% of their accounts with stocks that have a stronger recovery momentum than the general market, while maintaining a cautious mentality and not using leverage.
"Investors are still cautious and refrain from buying at the bottom early. The fact that VN-Index has had short bounces during the session is not enough to confirm that the market has found its balance in the short term" - VCBS analyzed.
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