The stock market has been in a tug-of-war all week with consecutive up and down sessions. Liquidity remains weak, reflecting the still-present cautious sentiment of investors.
The market ended the weekend session with a negative outlook as the number of stocks losing points was more than 3 times the number of stocks gaining points. The VN-Index lost nearly 10 points and fell to the lowest price of the day, but liquidity remained low as buyers were still observing and thought that this was not a good price to "import goods". The positive point is that the selling pressure has not appeared and the market still maintained the price range of 1,250 points, which is currently the strong support level of the VN-Index.
The sharp decline last weekend, which was also the first trading session of November 2024, took away most of the index's recovery efforts throughout the past week. The lack of liquidity even during the recovery sessions showed that cash flow was not ready to return to the market, when the index did not have much clear momentum to break out.
In terms of contribution, the 10 stocks with the most negative impact took away more than 5 points from the VN-Index, led by MSN, GVR, VPB and MBB, causing the index to decrease by about 2.5 points. On the contrary, the 10 stocks with the most positive impact only helped the VN-Index increase by less than 1 point, showing the dominance of the selling side.
Moreover, the continued net selling pressure from foreign investors also caused significant pressure. The VN-Index closed the last session of the week at 1,254.89 points, down 0.76% compared to the previous session.
Foreign investors continued to net sell more than VND8 trillion on both exchanges this week. Of which, foreign investors net sold nearly VND7.9 trillion on the HOSE and net sold more than VND116 billion on the HNX.
According to analysts, the fact that speculative stocks such as real estate and securities have opposite movements shows that the market does not have a strong consensus on the upward direction.
Currently, there are many factors affecting the stock market, including psychological factors, economic prospects, loose or tight monetary policies, net selling by foreign investors, business performance prospects of listed companies, etc.
The exchange rate has recently fluctuated strongly again, which has caused some concern and had a negative impact on the stock market. However, the exchange rate fluctuations at the end of the year do not put as much pressure on the operator as at the beginning of the year, but are more seasonal due to the increased demand for USD at the end of the year, serving commercial needs and debt payment obligations. Therefore, it is possible that in the next few weeks, the exchange rate tension will cool down and stabilize again, so there is nothing to worry about at present.
However, with the FED still considering two interest rate cuts in early November and mid-December - measures to stimulate the economy, the economic outlook will soon support the recovery of the stock market. Short-term exchange rate fluctuations and the current adjustment in the stock market are only temporary phenomena and will soon end with a more positive scenario.
Dr. Nguyen Duy Phuong, Investment Director of DG Capital, said that the main trend in the medium term of the market is still growth interspersed with short-term corrections. For long-term investors, corrections like the current one are still a good opportunity to accumulate more cheap stocks. As for short-term investors, at the current price range, they can disburse part of their capital and focus on growth sectors.