The stock market is in a state of fluctuations and adjustments within a narrow range as it enters a peak of more than 3 years. The development of tug of war and differentiation appeared more clearly, reflecting the cautious psychology of investors.
At the end of today's session on June 6, VN Index decreased by 12.2 points, equivalent to 0.9% and fell below 1,330 points. The entire HoSE floor had 233 stocks down, 76 stocks up and 51 stocks moving sideways. The selling pressure, although causing the index to decrease, helped liquidity remain high with 979 million shares matched, equivalent to a trading value of VND 22,263 billion.
One of the reasons for the sharp decline in the index is strong selling pressure from foreign investors. In today's session, foreign investors net sold more than VND 2,000 billion on the HoSE. Of which, the code that was net sold the most was VHM (1,579 billion VND). Next are the codes VCI, FPT, HAH, STB, HCM.
According to experts, this is a normal and healthy adjustment rhythm, not much impact to change the trend of gaining points previously formed. Regarding the potential risks affecting the trend of foreign investors, the Analysis group of Tien Phong Securities Company (TPS) said that the existing exchange rate pressure is quite large. If the exchange rate continues to fluctuate strongly and the VND depreciates deeper than the coins in the region, it can increase the pressure to withdraw capital from the Vietnamese stock market.
In addition, risks from high US interest rates have caused capital flows to shift to developed markets. However, looking further, the stable operation of the KRX system and Vietnam's approach to the goal of upgrading the market are also factors that can attract capital flows from funds and professional foreign institutional investors", experts from TPS expressed their views.
According to TPS, the current trend of the market is still quite positive. However, the market may appear shaking or adjusting light techniques because VN-Index is approaching important resistance 1,343 points, and the momentum of momentum indicator has weakened phenomenon from over-purchasing areas, whereas the short-term and long-term support levels are 1,291 points and 1,268 points will help the index not adjust deeply.
The TPS analysis team presented a number of scenarios for the VN-Index. In a positive scenario, the VN-Index could surpass the resistance of 1,343 points and reach the 1,500 point mark with high liquidity, opening up a medium-term uptrend.
A re-examination run of 1,343 may appear after successfully crossing the mark. Investors can wait for the event of overcoming resistance and liquidity to occur to consider participating in the market in retests.
The negative scenario occurs in the case of the market facing many unfavorable pressures, causing the VN-Index to lose short-term support at 1,291 points, the index may retreat to 1,268 points. In general, although it is a negative scenario, the level of loss in scores is not too large. Investors can disburse at a moderate ratio in support to catch the recovery wave.
