Investor anxiety in the context of global geopolitical instability, especially in the Middle East, continuously escalating, has created strong selling activity right from the time the stock market opened the trading session on March 9.
Investors strongly sold stocks, except for the oil and gas group, causing the VN-Index to lose more than 100 points, breaking the 1,700 point mark at 10 am this morning. On the HOSE exchange, there were only 18 gainers and more than 330 losers with 162 floor-price stocks.
Only the oil and gas stock group went against the market. BSR was in the most excited state when it increased by more than 6%, to 39,400 VND. Other pillar codes of the oil and gas group such as PLX, OIL, PVD, PVT were all higher than the reference level by 2-5%. Liquidity of these codes also increased rapidly, mostly reaching more than 100 billion VND.
Red color also covered the Korean and Japanese stock markets right when opening the trading session on March 9. The strong sell-off took place in the context that world oil prices for the first time broke through the 100 USD/barrel mark in nearly 4 years.
Asean Securities Company believes that the current developments reflect a short-term trend shifting to a less positive state after an unsuccessful recovery phase at the resistance zone around 1,880-1,900 points.
Short-term investors should maintain a defensive state, maintain the proportion of stocks at a moderate to low level, limit margin use and do not chase buying. Only survey purchases of very small proportions should be made when the index holds steady at 1,760-1,780 points and signs of bottom formation appear more clearly, focusing on stocks that are stronger than the market, with their own story.
VCBS also gave its opinion that although there are signs of active buying cash flow, supply pressure is continuously strengthened, causing the index not to narrow its downward momentum, putting great pressure on the entire market. With the context of global geopolitical instability continuously escalating, we recommend investors to review and restructure their portfolios in the direction of profit-taking of targeted codes to protect achievements. At the same time, continue to closely monitor market developments and only disburse new funds when the market shows signs of rebalancing or creating a clear trend reversal bottom.
