After a week of recovery at the 1,245-point support level with weak liquidity, the VN-Index this week fell sharply by 7.97% compared to last week with increased liquidity. This is the sharpest decline in a week since October 2022. At the same time, the HNX-Index also ended the week at 220.80 points, down 8.51% compared to last week.
During the week, liquidity on HOSE increased by 36.1%, showing a sharp increase in selling pressure, more sudden in many codes and groups of codes. Foreign investors increased their trading, continuing to net sell with a value of VND 2,248 billion on HOSE.
The mixed macroeconomic situation, with increasing global instability, is also considered to be part of the reason why the market is under pressure to adjust. Accordingly, weak credit growth shows that the economy is still absorbing capital poorly. Exchange rates remain high, and the difficulties facing the real estate market and especially the bond market have not yet had a fundamental change.
The global economic situation is also unpredictable. The EU region has many economies entering recession such as France, Germany, the Netherlands, the UK... In addition, the FED said that the US economy has not shown any signs of inflation returning to the central bank's 2% target. At the same time, tensions in the Middle East escalated when Iran launched a large-scale attack on Israel from the night of April 13, 2024 to the early morning of April 14, 2024.
According to BSC Securities Company, in the coming sessions, the VN-Index is likely to continue to fluctuate around the 1,175 point threshold. In the worst case, the index may retreat to the support level of 1,150.
Sharing the same view, VPBankS Securities Company believes that investors need to be cautious and keep their portfolios at a safe level, while observing supply and demand developments at the support zone to assess the market status.
According to Vietcap Securities Company, if VN-Index breaks the 1,175-point defense line, it may retreat to the 1,150-point area to seek support from new demand. In case VN-Index can narrow the decline and close above 1,175 points, the index may experience a technical recovery to 1,200 - 1,210 points. On the contrary, VN-Index will temporarily enter the bear market area.
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