The Vietnamese stock market has just undergone a strong adjustment session, ending a streak of 4 consecutive increases, with increased profit-taking pressure and a lack of new supporting motivations.
Entering the new week, the market continued to be under pressure to adjust as the group of bluechip stocks still put great pressure on the market. Although there was a slight recovery, selling pressure was always present, causing the VN-Index to quickly return below the reference level.
At the end of the trading session on the morning of June 9, the HOSE floor had 94 stocks increasing and 196 stocks decreasing, the VN-Index decreased by 6.72 points, down to 1,323.17 points. The total trading volume reached nearly 355.6 million units, worth VND 7,632 billion.
In terms of industry groups, with the pressure from the large pair VIC-VHM, the real estate group is still among the top deeply declining in the market, although many small and medium-sized enterprises still maintain good transactions. The group of banking pillar stocks is still mainly trading in red although the decrease is not too large, mainly less than 1%.
Notably, large VHM stocks continue to be under selling pressure from domestic and foreign investors. At the end of the session, VHM decreased the most in the bluechip group when it lost 2% with the matched volume reaching more than 2 million units and the foreign market net selling more than 0.4 million units.
VIC shares at the end of the session also decreased by 1.6% to a low price range in the session of VND 95,400/share. The big pair Vingroup alone took away nearly 3 points from the general index.
According to experts, the market may continue to be under pressure to adjust due to factors. Firstly, investors' cautious psychology after a strong increase is showing a profit-taking trend, especially when the VN-Index has not been able to conquer the 1,350 point mark in recent sessions.
The number of stocks with good profitability in the last 10 sessions is decreasing and buying is often having negative performance. The weakening of the increase range shows that the increase momentum is gradually decreasing. This shows that adjustment is necessary to create new price increase momentum.
The second reason is that the market is lacking new supporting information, there are no macro factors or short-term breakthrough policies. The market may fluctuate within a narrow range, around the 1,320-1,350 point range.
Currently, the cash flow of foreign investors is selling net while domestic investors are not ready to push up the prices of large-cap stocks at this time, creating downward pressure. Foreign investors have sold strongly, with a value of VND 1,819 billion last week. This reflects the trend of withdrawing capital from emerging markets, including Vietnam, due to interest rate differences and exchange rate pressure.
However, experts say that the impact of foreign investors is no longer as great as before, because domestic cash flow has become the main support force for the market. Strong domestic cash flow, especially in VN-Index peak sessions (gross turnover exceeds 1 billion USD), shows the confidence of domestic investors.
Recently, the net selling trend of foreign investors is not too strong. Every few net selling sessions, they will buy back and they seem to be restructuring their portfolios to welcome a new price increase trend, not just a one-way net sale like in the previous period.
The stock market is forecast to fluctuate or adjust slightly in the support zone around 1,250 - 1,200 points and resistance at 1,350 points. Investors should focus on stocks with their own stories such as policy benefits, positive business results and strict risk management, limiting high-priced purchases.
