The stock market unexpectedly had a volatile session yesterday, July 17. The market reacted negatively at the end of the session with increased supply pressure at the end of the session, focusing on small and medium-cap stocks. However, banking stocks in particular and the VN30 index still closed with a good increase in points, along with foreign demand, helping the VN-Index maintain its momentum and react with a "withdrawal".
Besides the dramatic developments of the general market, foreign investors also had an impressive trading session on July 17 when they returned to disburse on both HOSE and HNX, and switched to a positive net buying status of nearly 600 billion VND.
From a market perspective, the large price decrease amplitude on most stock groups accompanied by explosive liquidity shows a signal of a negative distribution phase. However, there is still a view that this adjustment phase is appropriate when the general valuation level has increased rapidly during the month. What is worth noting is that liquidity in the recent period showed gloom in the sessions of increase, while it was more active in the adjustment sessions. This partly reflects the market's general view of the risk factors that are dominating in the short term such as exchange rate pressure, rising interest rates, etc.
According to analysts from Vietnam Construction Securities Company, the positive point in yesterday's session was that despite the sharp decline, the VN-Index had not yet broken through the support level of 1,255-1,258 points, so in the opinion of experts, the downward trend has not yet been confirmed. However, with the strong selling pressure in yesterday's session, the correction momentum may still continue in the coming sessions to test the above support level again.
Analysts from SHS Securities Company believe that in the short term, the trend of VN-Index will become less positive when it fails to maintain the support zone around 1,275 points, corresponding to the average price of the last 20 sessions, leading to strong selling pressure and falling back to the support zone around 1,255 points before recovering slightly. It is expected that the selling pressure will gradually decrease in the next few sessions and VN-Index can still recover to the resistance zone of the 20-session average price line around 1,275 points, similar to VN30 after falling below this average price line in previous sessions, but still recovering and surpassing with a sudden increase in liquidity.
Looking back at the stock market in the first two weeks of July 2024, the VN-Index had a recovery period, but slowed down when the index faced the 1,300 point threshold.
Dr. Nguyen Duy Phuong, Investment Director of DG Capital, commented that this is only a psychological threshold, hindered in the short term, but in the medium term there are many supporting factors to break out to higher points. If foreign investors continue to net sell, the main story will focus on groups that are not net sold too much or a clear story about the recovery in revenue and profit such as retail, chemicals, construction materials, seaports, logistics. When foreign investors reduce net selling or return to net buying, a consensus increase in points is likely to occur. Large stocks that have been sold heavily and suppressed in the past will return and the general market will increase rapidly in points.
Source: https://laodong.vn/kinh-doanh/chung-khoan-van-con-nhieu-yeu-to-ho-tro-tich-cuc-1368032.ldo
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