In the trading session on the morning of September 5, the pillars and financial groups continued to take turns becoming the fulcrum to help the general index quickly improve and successfully conquer the peak of 1,700 points for the first time in history.
However, almost immediately, the rush supply pushed up the electricity billboard, causing the index to quickly reverse, even at times "evaporating" more than 30 points.
On the other hand, cash flow is quickly "added" when buyers take advantage of the opportunity to buy goods at attractive prices. Thanks to that, liquidity has improved sharply with 1.69 billion shares matched on the HoSE, equivalent to a trading value of VND48,820 billion.
However, bottom-fishing cash flow cannot help VN-Index escape a deep decline. At the end of the trading session on September 5, the VN-Index decreased by 29.32 points, equivalent to 1.73%, to 1,666.97 points.
The group of stocks that fell sharply caused the index to lose points mostly came from the group of banking stocks such as: VCB, VPB, BID, MBB, CTG, LPB, SHB, HDB. Along with that are bluechips such as VHM, HPG, MWG, SSI, FPT, VND, MSN. These 15 codes alone have indirectly taken nearly 20 points from the VN Index.
Foreign investors also continued to push up their selling off in today's session with a net selling value of nearly VND1,400 billion on the HoSE.
Investors said that most industry groups have increased, and no group has much room to increase due to low valuations. The current market is no longer led too much by fundamental factors but is being led by cash flow, which can lead to strong corrections to make the uptrend more sustainable.
In the current period of strong cash flow, it should be favorable to increase, apply a buying and holding strategy until the market shows signs of a strong downward pull and then withdraw. However, investors should not use margin much but should maintain the current stock ratio because the market has increased quite a lot, the risks are starting to increase. Signs to consider reducing the proportion are that liquidity has begun to decline, or the market has decreased sharply for 2-3 consecutive sessions.
Dr. Nguyen Duy Phuong, Investment and Strategy Director of DG Capital, said that crossing the 1,700-point threshold is not very meaningful, but the new trading volume is a more important factor to demonstrate the development of the market and the concern of investors. Accordingly, from now on, the VN-Index may increase by 10-20% until the end of the year.
Investors should take profits from stocks that have increased rapidly and far exceeded business prospects. Consider reducing the proportion margin because the easiest period to make money has passed, the market will have more difficulties with intertwined fluctuations of increase and decrease and strong differentiation. At the same time, shift investment to stocks that are somewhat more lagging in rhythm but business prospects are still guaranteed and stocks that are more sustainable and long-term, limit stocks with high speculation to avoid risk of fluctuations, Dr. Phuong recommended.
