After 2 consecutive sessions of decline last weekend, the VN-Index reversed and recovered right after opening on the morning of November 4. However, weak demand while selling pressure is always there, has made it difficult for the market to rebound.
After nearly 1 hour of swings on the reference level, the increased selling pressure widely and with the great pressure of pillar stocks and large-cap stocks, caused the VN-Index to decrease by nearly 20 points to close to the 1,620 point mark.
The group of securities stocks continued to be the least positive when the industry was covered in red, in which VIX stocks had another sharp decline, down above and below 4% and traded below VND27,000/share. Other large groups such as banks and real estate have not escaped the adjustment trend.
At the end of the morning session, bottom-fishing demand entered the game positively, with a fairly good recovery of banking and Vingroup stocks, helping the VN-Index rebound and surpass the 1,650 point mark.
However, the joy did not last long. VN-Index opened the afternoon session quite negatively with selling pressure continuing to increase, causing the index to plummet and close in a pessimistic red color. In terms of impact, TCB, VPB, STB and HPG are the stocks that have the most negative impact on the VN-Index with more than 6.6 points of decrease. On the other hand, VIC, BVH, FPT and KDC are the stocks that still maintain green color but only contribute to the general index of more than 5.2 points.
At the end of the first trading session of November, the VN-Index decreased by 22.65 points, down to 1.617 points. Market liquidity reached the trading volume matched by the VN-Index with a value of more than VND 27,700 billion.
Investors predict that the VN-Index is likely to continue to struggle when demand is still cautious and the impact of the adjustment of large-cap stocks has not completely ended, causing fluctuations and the possibility of re-evaluating the support zone may continue. However, the improved market width shows that the general trend has not changed badly and the 1,600 - 1,630 point area is expected to be a reliable support area in the short term.
Dr. Nguyen Duy Phuong, Director of Strategic Investment at DG Capital, commented that the market may continue to be in a state of tug-of-war when large-cap industries such as banking, securities, and real estate are still in an adjustment trend. Cash flow is Differentiating and shifting from the leading industry groups in the previous period to industry groups that have not increased in price much compared to the VN-Index, such as oil and gas, industrial parks, and exports.
"Market liquidity is clearly declining compared to the previous period, the momentum indicators are no longer maintaining a positive state, the VN-Index has lost the short-term uptrend when closing below the 20-day MA line. I think the market will need more time to accumulate at the current price level before forming a new, clearer trend," said Dr. Phuong.
