The stock market had a new trading session at the beginning of the week that increased by more than 13 points but was assessed by experts as unconvincing as the increase was mainly due to some major pillars. Meanwhile, market liquidity continued to be pulled down to a very low level.
At the end of the trading session on November 24, the VN-Index increased by 13.05 points (+0.79%), to 1,667.98 points. The total trading volume reached more than 576.4 million units, worth VND 17,363.5 billion.
Vingroup's home equity group with VRE increased the ceiling by +7% to VND34,450, matched orders of more than 26 million units and had a surplus to buy at the ceiling price of more than 1.6 million units. The two VHM stocks increased by +3.4% to VND 102,700 and VIC +4.3% to VND 239,500.
The other two stocks with high increases are VJC +5.2% to VND 204,800 and VNM +5.2% to VND 63,000. In total, the above bluechips have contributed more than 16 positive points to the VN-Index.
Regarding foreign transactions, it continues to be in a state of net selling of more than VND 1,000 billion. Surprisingly, the group of stocks that are the "pull-ups" for the index are the stocks that were issued the most by foreign investors on the HoSE exchange today. VRE was net sold for VND 288 billion, VHM was net sold for VND 151 billion, VIC was net sold for VND 119 billion.
The market still maintains its upward momentum, but liquidity is still a big question mark. Investor sentiment is tending to trade short-term more than holding. This is clearly shown in the fact that cash flow has not returned strongly to leading stocks such as VN30, which are still trading quite sparingly.
The general market is still moving in the adjustment phase and there is no clear signal of a breakthrough from this phase, so the risk of cooling down is always tiem nang. Cash flow has since become more cautious, reflected in declining liquidity.
The rotation in the large-cap group to support the index became even more obvious, while the market width weakened with the percentage of stocks on the 20-day MA having decreased below the threshold of 50%.
In addition, according to observations, there has not been a truly outstanding leadership group to attract cash flow to stay too long. If the index recovers with differentiated cash flow, focusing only on a few pillar stocks, it could make the increase less sustainable.
However, the positive thing is that cash flow has not withdrawn from the market but is repositioning to cheap-priced stocks with good growth potential, such as mid-cap and small-cap, especially in industries with a positive fundamentals or benefiting from the general recovery cycle of the economy.
With such a cash flow structure, the scenario of the market continuing to move in the sideways zone is still supported. Although caution can create a surprising correction, the valuation level is not currently too high to trigger a strong downtrend.
Looking ahead, investors' expectations will focus on stability and the ability to maintain profit growth in key industry groups such as banking, securities, steel, etc., while paying attention to recovery opportunities in areas under pressure from business results.
The market may still maintain high volatility in the short term, when macroeconomic information and monetary policy are still hot spots, but with a clear profit growth foundation and differentiation, the opportunity to select quality stocks will be a key factor to help investors overcome this challenging period.
