VN-Index increases in fear
The July 3 stock market session started the new month with investors being cautious. Right from the beginning of the session, a cautious attitude appeared as the cash flow into the floor was quite modest. However, the selling pressure was not large, so the VN-Index still maintained its green color.
VCBS Securities Company commented that after two sessions of decline, the general sentiment of investors is still timid and concerned about the short-term market correction, leading to gradually increasing selling pressure and pulling the general index closer to the reference level.
However, the differentiation is still evident as demand still finds its way to individual industry groups, most notably chemical stocks with an increase of more than 2%. Green was still maintained in the afternoon session, but active buying liquidity no longer increased strongly and somewhat lost steam when the general index reached 1,125 points.
Ending the series of net buying sessions, foreign investors returned to disburse throughout the session with liquidity of 134 billion, focusing on buying HPG, SSI, VHC.
Stocks on July 3 rose following the excitement of the Asian market. However, this is not a good sign when liquidity dropped sharply. Illustrative photo
At the end of the stock market session on July 3, VN Index increased by 5.32 points, equivalent to 0.47% to 1,125.50 points; VN30-Index increased by 0.24 points, equivalent to 0.02% to 1,123.37 points. The entire floor recorded 253 stocks increasing in price, 59 stocks remaining unchanged and 169 stocks decreasing in price.
These data show that penny and mid-cap stocks were the main drivers of the stock market's price increase on July 3. Blue-chips failed to play their role. Cash flow into large-cap stocks was very low, with only 156 million shares, equivalent to VND3,998 billion, successfully traded in the VN30 group.
Notably, the highlight of the stock market on July 3 was not the VN-Index regaining its green color but the sharp decline in liquidity. The index increasing with low cash flow shows that investors are full of fear. And this is not a good signal for the market.
On the Hanoi Stock Exchange, the HNX-Index even closed the July 3 stock session in red, down 0.72 points, or 0.32%, to 226.60 points. Meanwhile, the HNX30-Index increased 2.77 points, or 0.65%, to 429.54 points.
Liquidity on the Hanoi Stock Exchange in the July 3 session also plummeted. Only nearly 80 million shares, equivalent to VND1,153 billion, were successfully traded.
Asian stocks up
Asia-Pacific markets rose as investors digested a slew of manufacturing activity reports that showed output in the region is slowing.
China's Caixin manufacturing purchasing managers' index for June came in at 50.5, slightly above expectations of 50.2 according to a Reuters poll.
Hong Kong's Hang Seng index rose 2.2%, leading gains in the region, and the Hang Seng Tech index rose nearly 4%.
Mainland Chinese markets were also higher: the Shanghai Composite rose 1.31% to end at 3,243.98 and the Shenzhen Component gained 0.6% to end the day at 11,091.56.
Japan's Nikkei 225 index led the region's gains and rose 1.7% to close at a fresh 33-year high of 33,753.33, with the Topix also up 1.41% to end at 2,320.81.
In South Korea, the Kospi rose 1.49% to end at 2,602.47, extending its recovery on Friday, and the Kosdaq rose 2.42% to end at 889.29.
In Australia, the S&P/ASX 200 rose 0.59% to close at 7,246.1 as investors awaited the Reserve Bank of Australia's interest rate decision on Tuesday. Economists polled by Reuters expect the central bank to raise its cash rate by 25 basis points to 4.35%.
The S&P Global ASEAN Manufacturing Purchasing Managers' Index showed conditions in the manufacturing sector improved slightly in June, coming in at 51, down from 51.1 a month earlier.
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