After continuous sessions of increase and conquer historical milestones, the stock market last week was under quite great profit-taking pressure. Especially the session on July 29 when the market suddenly shook strongly with record high liquidity, showing a large profit-taking force spreading widely.
After that, the large-cap group differentiated, taking turns supporting the index for each session. At the end of the week, the VN-Index decreased by -2.35% to 1,495.21 points. Trading volume on HOSE increased by 31.6% compared to last week, an average of more than 1.8 billion shares/session.
Regarding the trading value of foreign investors, last week was the second consecutive week that foreign investors were net selling in the market, even the net selling value increased significantly when it increased from only 1,940 billion VND in the previous week to nearly 4,900 billion VND in the past week.
On the HOSE, foreign investors have net sold up to four sessions and only bought net one session on July 30. In total, foreign investors net sold more than 86.4 million units last week, with a net selling value of more than VND4,754 billion.
According to statistics from stock codes, in the last trading week, foreign investors continued the net buying trend in many banking stocks, real estate and large-cap stocks.
Leading the net buyers was SHB with a value of VND 623 billion, followed by VNM (VND 412 billion) and VCG (VND 328 billion). On the other hand, FPT was the stock with the strongest net selling with a value of up to VND1,399 billion, far surpassing the rest. Following are HPG ( 999 billion VND) and SSI (803 billion VND), showing that foreign investors are tending to divest from some leading stocks.
According to analysts, in recent trading sessions, the stock market has recorded a remarkable cash flow circulation between industry groups, as capital is gradually withdrawing from large-cap stocks to switch to medium and small-cap stocks or replacement industry groups. This is in line with investors' expectations and is typical of a traditional bull market.
The group of large-cap stocks has partly reflected expectations of market upgrading and support policies, so the room for price increase in this group is showing signs of narrowing. Meanwhile, small and medium-cap stocks still have a lot of room for growth, especially if cash flow continues to spread more widely in the next price increase cycles.
However, some market barriers are hindering the ability to re- Valuate more widely for the mid- and small-cap group. The recent increase has been widespread but largely driven by the use of margin, raising concerns about the risk of strong corrections and making investors more cautious when switching to unfamiliar stocks. The high margin usage rate and large unpaid profits also contribute to slowing down the cash flow circulation to the mid- and small-cap group.
However, the adjustment is reasonable and investors have the opportunity to buy attractive stocks such as stocks or real estate. The adjustment will help the market consolidate the price base, relieve profit-taking pressure, and at the same time create conditions for new cash flow to join. This is an opportunity for investors to restructure their portfolios, instead of considering it a signal to reverse the trend.
