Bottom-fishing demand helps the stock market narrow downward momentum in the morning session

Gia Miêu |

Absorption demand has increased as VN-Index decreased to near the 1,800 point mark, helping the stock market narrow its decline.

The Vietnamese stock market had a difficult start in the first trading session again after a long holiday. In the morning trading session on September 3, the market faced widespread selling pressure, causing red to prevail on the electronic board and VN-Index turned to adjust after 7 consecutive increasing sessions. The VN-Index is fluctuating strongly around the 1,810 point mark. Even at one point, VN-Index retreated sharply to near the 1,800 point threshold, corresponding to a decrease of nearly 30 points.

Thanks to increased absorption demand at the end of the morning session, the market recovered, significantly narrowing the decline. At the end of the morning session on September 3, HOSE had 91 gainers and 203 losers, VN-Index decreased by 10.51 points (-0.57%), to 1,821.61 points. Total trading volume reached 282.2 million units, worth 8,028 billion VND, an increase of approximately 12% in volume and 17% in value compared to the morning session at the end of the previous week on August 28. Block transactions contributed 24.2 million units, worth 1,057 billion VND.

One of the drivers helping the market positively recover is the large stock VIC finding its green color again, while VHM narrowed its decline significantly. Closing this morning's session, VIC increased slightly by 0.1%, while VHM decreased slightly by 0.3%. Banking and securities stocks still mainly traded in red. However, a few bright spots in the industry such as SSB reversing the trend, closing the session up 5.3% to the highest price in the morning session; or VIX increased by 1.1% with market-leading liquidity reaching more than 18 million units.

The energy and fertilizer stock group is a bright spot in the market with green color covering the entire industry due to the strong increase in world oil prices. After the US and Iran launched military attacks on each other, ending many relatively quiet weeks in the Middle East, oil prices increased sharply, with Brent oil increasing by about 1% to above the 95 USD/barrel mark, while WTI crude oil also recorded an increase of nearly 1% to the 91 USD/barrel mark.

In the morning session of September 3, the market recorded BSR increasing by 2.98%, DPM increasing by 4.5%, being the two most actively traded codes in the group, reaching around 7 million units.

Experts from Saigon - Hanoi Securities Company (SHS) believe that the short-term trend of VN-Index is still positive after surpassing the strong resistance zone around 1,800 points. The index is expected to move towards the 1,850-1,900 point zone. However, when entering the strong resistance zone, supply pressure may increase and VN-Index may have to retest the support zone of 1,800 - 1,820 points.

Meanwhile, VN30 is heading towards the resistance zone of 2,000 - 2,025 points, corresponding to the July peak. This shows that there is still room for increase, but the risk of volatility and differentiation is also increasing.

Entering September, the biggest focus of the market, FTSE Russell, officially upgraded Vietnamese securities from a frontier market to a secondary emerging market, effective from September 21. This is considered one of the important drivers for the market this month.

According to the analysis group from MB Securities Company (MBS), September can be divided into two phases. In the first half of the month, upgrade expectations are likely to continue to support investor sentiment, helping liquidity improve and cash flow direct attention to stocks in the portfolio related to FTSE.

Gia Miêu
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