Stocks lose steam under strong selling pressure from foreign investors

The stock market had a sharp decline week and the VN-Index fell below the MA200 line.The widespread selling pressure, which was constant and suddenly concentrated on many securities companies in the last two sessions of the week, made this group of stocks the most notable decliners.

At the end of the trading week, the VN-Index lost nearly 34 points to 1,218.57 points.The average matched liquidity on the HOSE floor reached 665 million shares/session, equivalent to an increase of nearly 29% compared to the previous week.The average trading value reached 16,773 billion VND/session.

Foreign investors diligently sold hundreds of billions of VND per session, even up to thousands of billions.Notably, the pair of large stocks VHM and MSN were net sold by foreign investors for more than 3,000 billion VND in the first half of November alone.

Statistics on the HOSE floor last week showed that foreign investors net sold for 5 consecutive sessions.In total, this group net sold 126.7 million units, with a total net selling value of VND4,027.77 billion.

On the HNX, foreign investors also net sold for 5 sessions.In total, this group net sold more than 4.6 million units during the week, with a total net selling value of VND114.93 billion.

Regarding the performance of stock groups, on the HOSE, reflecting the general sharp decline, most of the stocks with the strongest growth only increased by about 10%, showing the difficulty of finding short-term profits, even though some increased strongly, their liquidity was only low.It is easy to see the appearance of some stocks in the securities company group such as VDS, BSI, AGR, CTS, decreasing by 10-12%, affected by the selling pressure on this group in the last two sessions of the week.

On the HNX, some small and medium-sized stocks received speculative cash flow and increased quite strongly with positive liquidity such as GKM, PGT, PGN.The rest traded quite sluggishly with relatively low matching volume in the sessions.

The 1,300-point mark can be considered a strong psychological and technical resistance level of the market in the current period.Previously, the 1,200-point mark was also a major resistance that VN-Index had to test 5 times to overcome.

After overcoming this threshold, the market grew strongly, creating a positive foundation for investors.However, the current 1,300-point mark is even more difficult due to many factors affecting the market and investor psychology.

According to analysts from VPS Securities Joint Stock Company (VPS), one of the main reasons why VN-Index has not been able to break out is the group of large-cap stocks, especially the banking and technology groups.The stocks of these two sectors have had a period of strong growth in the past, causing their prices to reach high levels and need time to accumulate again.Meanwhile, the real estate and steel stocks have not shown signs of stable recovery, negatively affecting the general index.

In addition, the cash flow into the market is not strong enough to create a significant push for the VN-Index.When the cash flow is mainly from investors and there is no strong foreign capital flow or large capital flow from organizations.Macro factors, such as monetary policy, interest rates, and the global economic context, also affect investor sentiment, causing the market to not surpass the 1,300 point mark.