Entering June, the stock market is expected to continue to receive widespread cash flow, however, experts said that after a strong increase in May, short-term adjustments are necessary to re-establish a new balance zone.
According to Mirae Asset Securities, the VN-Index just ended May with an impressive increase of 106 points (+8.67% MoM), marking the fourth consecutive week of increase. The index closed at 1,332.6 points last week, up 1.38% compared to last week. However, demand has shown signs of weakening in the last sessions of the week, when the VN-Index surpassed the important resistance level of 1,340 points.
Market liquidity remained at a high level, with an average trading value of each session reached about 21,300 billion dong, up 4% compared to the previous week. The bright spot is that the cash flow is still spreading on a large scale, especially the real estate stock group continues to play a leading role. The real estate market capitalization increased by 7.8% compared to the previous week, contributing more than 17 points to the VN-Index. VIC - VRE - VRE trio of Vingroup is the main factor, bringing more than 12 points to the index.
However, profit -taking pressure has appeared in some bank and retail stocks. Meanwhile, foreign investors continued to maintain a net selling state with the value of VND 2,700 billion in the past week, bringing the total net selling from the beginning of the year to 38,430 billion dong. The strongly sold codes include HPG (-507 billion), STB (-300 billion), VCB (-235 billion). In contrast, foreign investors buy at NVL (366 billion), VHM (245 billion), NLG (243 billion).
The autonomous block also net sells nearly VND 2,300 billion, with strong discharged codes including VPB (-307 billion), EVF (-283 billion), FPT (-134 billion). The group of domestic investors sold an additional 520 billion dong, bringing the total net selling from the beginning of the year to 7,580 billion dong. ETFs continued to withdraw 297 billion dong, bringing the total withdrawal from the beginning of the year to nearly 6,860 billion dong.
From a technical and cycological perspective, the market after a strong increase in May is entering a short-term adjustment phase to establish a new balance zone around 1,310 - 1,320 points. This is considered an important support zone before the index can accumulate enough foundation to continue the uptrend in the medium and long term.
“We simultaneously maintain the caution in the short term when the division of the industry is still existing and the trend of increasing in the last weeks, most of which receives the support of Vingroup shares, the momentum increases in the short term will need re -accumulated rhythms before continuing the trend in the medium and long term. Therefore, the rise in June will depend on the spread of the cash flow with the cash stocks and the cash stocks and the cash stocks and the cash stocks and the cash stocks and the cash stocks and the cash stocks and the cash stocks and the cash stocks and the cash stocks, the cash stocks and the cash, the size Leading like banks, retail and technology, ”Mirae Asset said.
Sharing the same view, Mr. Dinh Quang Hinh - Head of Macro and Market Strategy, VNDIRECT Securities Company commented that the 1,340 - 1,350 point area continues to be a strong resistance in the short term, while the 1,300 - 1,320 point area is expected to play a role as a reliable support area, especially in the context of foreign investors maintaining strong net selling momentum.
In the context of still struggling developments, experts from VNDIRECT recommend that investors should maintain the stock weight at an average level, be cautious about taking partial profits from stocks that have increased in the past. If the VN-Index adjusts to the 1,300 - 1,320 point range, it can consider new disbursement with a low proportion in some groups of stocks that have not fully recovered to the price range before the US announced a lack of tax counterpart in early April, such as banks, securities, steel, textiles and seafood.
