Stock market liquidity is still a big question mark

Gia Miêu |

Stock market liquidity unexpectedly increased sharply thanks to huge blockbuster transactions.

VN-Index just recorded a very strong increase in points in the first trading session of the week on June 22. However, the fact that the index mainly received support from the Vingroup group, while cash flow lacked spread and liquidity decreased and was still below the 20-day average shows that the gaining session lacked persuasiveness.

In today's trading session on June 23, the market received separate information about LPB shares related to the transaction of Mr. Pham Nhat Vuong and indirectly boosted VIC shares to increase sharply, contributing greatly to the VN-Index's upward momentum.

VN-Index at one point surpassed 1,885 points at the beginning of the afternoon session, but investors taking advantage of profit-taking on some midcap stocks caused the red color to spread widely on the electronic board.

Closing the session on June 23, VN-Index increased by 11.13 points (+0.60%), to 1,869.04 points. Total trading volume reached more than 945.4 million units, value 30. 989 billion VND, an increase of more than 55% in volume and more than 2 times in price compared to yesterday's session. However, the contribution from negotiated transactions was quite large with more than 250.7 million units, value 11,937 billion VND.

Foreign investors returned to net buying more than 1,400 billion VND. The main driving force lies in VIC stock with a net buying value of more than 2,700 billion VND.

The market breadth at the end of the session was 270 gainers compared to more than 400 losers, showing that selling pressure is still present widely. Strong pull from a series of pillar stocks such as VIC, LPB, TCB at HOSE and THD at HNX brought momentum to the score. In which, LPB maintained purple until the end of the session.

In terms of industry groups, the diễn biến tends to decrease. In some industries such as real estate, except for Vingroup stocks, VIC and VHM, most are filled with red. NVL decreased by 5%. DXG also decreased by 4%. Oil and gas stocks bottomed out today's session. Widespread red color in this group has caused the lowest overall group decline in the whole market. BSR, PVD, PVS, PLX... all decreased by 3-5%.

In today's trading session, although liquidity has improved, it mainly comes from block transactions, showing that cash flow is still quite cautious. Liquidity developments on the stock market today simultaneously reflect both factors: investors' cautious sentiment and the trend of cash flow temporarily standing aside to observe the market.

In the context of VN-Index moving in the accumulation zone, without strong enough information for the market to establish a new trend, investors tend to limit large-scale disbursement and prioritize risk management.

Cash flow mainly focused on some stocks or industry groups with their own story, while most stocks recorded differentiation and reduced liquidity.

Not only domestic factors, international developments also make investor sentiment more cautious. The market is closely monitoring the outlook for corporate profit growth in the second half of the year, the progress of public investment disbursement as well as the liquidity developments of the banking system. Besides, there are external factors such as monetary policy of major central banks, conflicts in the Middle East or fluctuations in world oil prices.

Cash flow may be temporarily seeking safe "havens", but if macroeconomic factors are more stable, corporate profits improve, and the market upgrade process continues as expected, the possibility of cash flow returning to the stock market is still positively assessed in the last months of the year.

At that time, the current quiet liquidity period can be seen as a necessary period of silence before a new cycle of market movement.


Gia Miêu
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