The stock market had a difficult trading week with 4/5 sessions falling. Although the withdrawal session on the derivatives expiry date significantly shortened the decline of the whole week, market liquidity was still below average, showing that investor sentiment has not yet recovered.
Moreover, foreign investors maintained their net selling momentum throughout the past week, which is also a notable factor. Foreign investors net sold all 5 sessions with a value of more than VND2.2 trillion on both exchanges this week. Of which, foreign investors net sold more than VND2.1 trillion on the HOSE and net sold nearly VND104 billion on the HNX.
The VN-Index ended the trading week with a not-so-positive result when consecutive sessions of decline dominated. At the end of the trading week, the VN-Index decreased by 2.93 points (-0.23%), down to 1,285.46 points. The HNX-Index decreased by 2.16 points (-0.93%), down to 229.21 points. Liquidity on both exchanges last week was divergent compared to the previous week when the matched volume increased slightly by 2.4% on HOSE and decreased by more than 15% on HNX.
Last week, the pillar stocks group was still the most active contributor, helping the index not to fall further. Another notable group were some real estate stocks, which were unexpectedly bought heavily on Thursday and helped some stocks to have positive gains throughout the week, such as VHM (+3.78%), QCG (+31.86%)...
Compared to previous approaches to the 1,300-point mark, the concentration on bluechips is at its highest in the past 3 years. VNDIRECT Securities Company said that the market is still in the right time for investors to continue holding and increasing the proportion of potential stocks.
The stock market remains attractive as market valuations are currently below the five-year average and will fall further as listed companies continue to grow their profits in the second half of the year. At the same time, the cooling of exchange rate pressures will allow the State Bank to focus on economic growth and support system liquidity in the remaining months of this year.
VNDIRECT forecasts that after a period of strong growth of large-cap stocks, cash flow may spread to mid-cap stocks (which have only recovered modestly after the recent correction), thereby continuing to maintain the positive trend of the market.
Experts from HSC Securities Company also commented that in the current period, cash flow shows signs of spreading to mid- and small-cap stocks when pillar stocks begin to show signs of shaking. With the positive shift of cash flow, the upward trend of the market will be more sustainable and short-term trading opportunities will remain positive. In addition, the short-term supply and demand movement has recorded fluctuations, but the buyer is still the one controlling the short-term upward trend.
"In general, the market has recorded a recovery after the VN-Index successfully maintained the short-term support level of 1,270 points. Accordingly, the overall market trend is positive. The fluctuations still create opportunities, especially the third quarter 2024 business results announcement season is entering a vibrant period and this is also the basis for short-term transactions to restructure the investment portfolio, as well as take advantage of the fluctuations to accumulate new positions," HSC experts stated.
