In yesterday's trading session, the VN-Index passed through the support levels and the 1,250-point threshold, although it was still maintained last week, but the market performance showed that it was quite fragile when active buying power had not returned to create a positive spread in the market.
And what was unexpected has finally come. VN-Index is getting further and further away from the reference level and closing the trading session at the lowest price of the day, which is also the lowest level in the past month, with liquidity of less than 13,500 billion VND. Concerns that the general index may bottom out at deeper support levels, typically 1,225 points, are becoming more and more present.
The recent fluctuations and adjustments of VN-Index show that the market is lacking in cash flow momentum, as well as the absence of a group of stocks with leading characteristics to create trends. This also affects investor sentiment, causing transactions to be somewhat quiet, reflected in reduced liquidity and low active buying power.
Low liquidity continues to demonstrate the market's recent instability. The market's constant fluctuations and declines continue to maintain a cautious sentiment among the majority of investors as the number of stocks with profits in the past few weeks has continued to decline.
Although the market has stopped falling and reacted positively at the 1,250 point area, and major industry groups have been increasing in turn, the increase could not last long and once again liquidity is still showing that this discount area is not too "attractive".
This week is the derivatives maturity week, as well as the ETF portfolio restructuring week, so the Bluechips group will see many fluctuations. Currently, the nearest support level of VN-Index will be the 1,230-1,235 point area. The strong correction of the index after several sideways sessions with low liquidity shows that the market will need to find a new equilibrium point - possibly the 1,220 point area. Here, demand will re-engage and be more proactive.
Currently, domestic economic stimulus policies are gradually bringing clearer results, promising to support the market in the final stage of the year. Therefore, corrections to the support threshold can create opportunities for investors to increase the proportion of stocks, taking advantage of the gradually improving macro background.
Experts from Kafi Securities Company commented that in the coming time, short-term investors need to pay attention to the movement of cash flow, prioritizing disbursement into stocks that attract large cash flows. Some sectors with growth prospects include the securities group with the expectation of benefiting from the possibility of market upgrade, the banking group thanks to credit growth and improved legal policies, and the real estate group with the opportunity to recover thanks to a more open legal corridor.
Experts from HSC Securities Company emphasized that the new trading week will have many important events such as the Fed's interest rate meeting and the expiration of domestic September derivative contracts. Therefore, before these events, the market may fluctuate unpredictably. Therefore, in the short term, buying actions should be prioritized in an observational state, ready to be deployed when the market signals balance and locks the bottom to enter a new uptrend. In the medium and long term, with positive macroeconomic data showing a solid recovery of the economy along with the maintenance of loose monetary policies, the stock market is still expected to continue to grow.
