The VN-Index is currently moving around 1,700 points - an important psychological region for the market.
In reality, when cash flow shows signs of weakening and liquidity decreases, the pressure to adjust becomes more obvious. This makes the market's chance of a short-term recession quite high, especially when investor sentiment becomes cautious after the previous strong increase.
And that was clearly demonstrated in today's first trading session of the new week on September 22. Widespread pressure and increased pressure on bluechip stocks have caused the VN-Index to quickly expand its downward range.
In particular, in addition to the red color of electronic boards and banking and securities pillars continuing to lose points, Vingroup's home stocks also turned around and adjusted down after a strong increase, pushing the VN-Index below the 1,640 point mark.
At the end of today's trading session, September 22, the VN-Index decreased by 24.17 points to 1,634 points. Liquidity on the HOSE floor reached VND35,765.83 billion. In terms of impact, VIC, CTG, VHM and VCB are the stocks that have the most negative impact on the VN-Index with more than 10.2 points of decrease.
Regarding foreign transactions, this group continues to net sell more than VND 1,726 billion on the HOSE, focusing on VHM (406.47 billion), VIC (327.46 billion), CTG (276.97 billion) and STB (152.68 billion). The prolonged net selling momentum of foreign investors is also one of the factors that have put significant pressure on the market in recent times.
The foreign investor's ownership ratio has once again retreated to a historical low of around 16%, erasing the short-term improvement in July. This is not only a technical figure, but also reflects the reservations of foreign capital flows for the Vietnamese market, in the context that internal stories are not convincing enough to retain them for a long time.
Regarding the reason for the market decline, investors believe that every time the Fed cuts interest rates, the market often has a downward adjustment or is in a sideways state (going sideways within a stable range, not forming a specific trend) leading to low liquidity.
The Vietnamese stock market has recently partly reflected important macro and technical factors such as Fed interest rates, derivatives expirations or ETF portfolio restructuring activities. Therefore, from now until there is official information about the market upgrade, cash flow is expected to become more cautious, instead of maintaining a strong breakthrough like in the previous period.
This is a reasonable "waiting" development, when domestic and foreign investors both want to confirm clear policy signals before increasing the proportion.
On that basis, some experts believe that the 1,610-1,620 point area is considered an important support level, where bottom-fishing demand can be activated back. This is also an area that has recorded good accumulation in previous adjustments, so it is expected that when the VN-Index approaches this area, the market will have a significant recovery.
In the positive scenario, after successfully assessing the support zone, the VN-Index is fully capable of re- jumping and attaining the 1,700-point mark. This development is not only technically meaningful, but also plays an important role in strengthening cash flow sentiment, helping the market regain balance and opening up breakthrough opportunities in the next phase.
