After witnessing a series of sharp declines in the last 3 sessions along with concerns about "call margin", investors have been quite cautious in the early part of today's trading session (November 4). Therefore, the liquidity of the bright session was low.
This trend continued in the first half of the afternoon session, at times the VN-Index was pushed back to reach the 1,600-point mark when the holding company lost patience and increased the selling order. However, at this score, bottom-fishing cash flow is starting to be activated.
Completely beyond imagination, today's session ended with green and purple in many industry groups, especially the securities group. The real estate group also developed the same.
VN Index increased by approximately 35 points, equivalent to 2.16%, to nearly 1,652 points.
On the HOSE floor, the electricity board recorded 189 codes of increase, including 22 codes of ceiling increase. Notably, the group of real estate and securities stocks were "thrown" the floor yesterday, but today they were pulled up the ceiling in the surprise of investors.
Strong bottom-fishing cash flow has helped the market improve liquidity compared to previous sessions. Today's session recorded nearly 1.2 billion shares matched, equivalent to a trading value of VND34,245 billion.
Participating in bottom-fishing in today's session also has strong buying power from foreign investors with a net buying value of more than VND 1,200 billion on the HoSE. Of which, the most strongly net bought code is VIX (326 billion VND). Following are the codes VPB, MSN, ACB, VCI. This group of stocks was net bought by foreign investors for more than 100 billion VND.
It can be seen that the market is waiting for a new catalyst after the third quarter business results season ends. Market liquidity in October decreased slightly compared to September, reflecting investors' cautious and waiting mentality.
Foreign investors maintain strong and persistent net selling momentum, creating significant psychological pressure on the market. It can be explained that the restructuring of the portfolio of peripheral market funds before Vietnam was upgraded is accompanied by the continuous increase in exchange rates in combination with interest rate differences, causing foreign cash flow to gradually withdraw from the market.
The drastic buying actions of domestic institutions demonstrate strong confidence in macro foundation factors and long-term prospects of the Vietnamese stock market.
Instead of spreading, cash flow tends to cool down in many leading stock groups and focus back on the financial group. The main liquidity leading and focus groups are still banks and securities, considered the "backbone" of the market. Along with that, real estate, financial and financial services groups recorded increased liquidity, showing the cash flow tending to shrink to the core group.
With the market lacking demand at high prices combined with liquidity tending to decrease, accumulation is necessary in the short and medium term.
Macro-level information is currently quite stable. The world and Vietnamese networks are both waiting for the Fed's next interest rate cut. The Fed's interest rate cut will also give Vietnam more room to balance the exchange rate. Short-term risks come from the lack of information after the end of the quarterly business results season, the market will need to adjust/ accumulate and can completely find more attractive discount areas to attract cash flow back to the market strongly.
Entering November, the market is expected to enter the necessary accumulation phase before forming a new trend. The short-term sideways trend has not been broken. Investors maintain the stock ratio at 50-80% of the portfolio without taking action early until a clear signal is shown.
