Received "reward" of nearly 4,000 billion VND to celebrate Western New Year
While gold investors enjoy huge profits, stock investors are in a state of "heart attack" when the VN-Index always brings a feeling of excitement in every trading session.
This week, the common feature of many stock market sessions is that VN-Index is in the red for most of the trading time. And the index only recovered in the last hours. In other words, investors can only breathe a sigh of relief at minute 89.
After 5 “brain-teasing” trading sessions, closing this week, VN-Index stopped at 1,103.06 points, up 1.3 points, equivalent to 0.12%. Thanks to that, the market capitalization of the Ho Chi Minh City Stock Exchange added 3,959 billion VND. It can be seen that investors were “rewarded” nearly 4,000 billion VND right before the New Year.
Despite being "rewarded" 4,000 billion VND before the New Year, investors still lose sleep because of the exhausted cash flow. Illustrative photo
VCBS Securities Company commented that the increase was not really convincing due to investors' caution in the face of the market's recent continuous fluctuations around 1,100, as well as the correction in large-cap stocks.
According to VCBS, differentiation was still recorded in the last session of the week, especially in banks with codes STB, MBB, BID, helping the general market increase slightly.
According to statistics, this week, retail stocks attracted the best demand with an increase of approximately 2.9%. Foreign investors have not shown any positive signs through continuous net selling. In the last session of the week, foreign investors net sold with liquidity of 507 billion, focusing on selling HPG and VND.
Losing sleep because of dry cash flow
Despite the early Tet “reward” from the market, investors still lost sleep. The reason is that cash flow continuously dried up and hit a 2-month “bottom”, causing confidence in the VN-Index’s upward momentum to gradually waver.
Mr. Le Thanh Binh, a professional stock investor, shared: “The increase of VN-Index in the context of weak cash flow is not a happy thing but a worrying sign. It shows that despite the fact that stock prices are increasing, buyers are still indifferent and do not dare to disburse. Thus, the increase of VN-Index will be hindered.”
At the same time, Mr. Binh said that Tet is the time when investors “close” their investment portfolios, liquidate some investments to withdraw money. Therefore, the amount of money standing outside “watching” is very large. Or in other words, a lot of money does not want to participate in the market.
Specifically, in the last trading session of the week, on the Ho Chi Minh City Stock Exchange, only 558 million shares, equivalent to VND12,254 billion, were successfully traded. Previously, in the "bottom" session on December 21, these figures were only 476 million shares, equivalent to VND11,163 billion, transferred.
On average, the trading volume per session reached 560 million shares, equivalent to VND12,643 billion. This figure in the last 2 weeks was 668 million shares (VND15,266 billion) and 930 million shares (VND20,718 billion).
Thus, after only 2 weeks, cash flow on the Ho Chi Minh City Stock Exchange decreased by 40%.
Low liquidity puts pressure on the market
VCBS commented that technical indicators have not shown signs of peaking, indicating that the VN-Index will continue to accumulate and continue its recovery trend in the coming time. Therefore, VCBS recommends that investors should maintain a stable mentality during volatile sessions and do not need to reduce their holdings at the present time.
“Investors can consider restructuring their portfolios, increasing their weight or buying new stocks that are still performing well, maintaining support levels or showing signs of surpassing their peaks,” VCBS said.
KBSV Securities Company assessed that the demand force partly shows a more proactive readiness to enter the market at low price levels and support levels of stocks. However, the uptrend is not really convincing when liquidity is still maintained at a low level, differentiation is taking place between industry groups and between stocks within the industry group.
Therefore, the index is expected to continue to face pressure soon at the resistance zone around 1,110 points.
KBSV recommends that investors avoid chasing in early recovery periods, and can consider flexible 2-way buying/selling with low proportions at the next support/resistance zones, specifically below 1,080 points and around 1,110 points.
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