In the context of the world, the latest political upheavals last weekend with the joint attack of the US and Israel on Iran risk causing major disruptions to oil supplies in the Middle East, and in the worst case, may lead to a global economic recession. This has greatly affected domestic investor sentiment as soon as the market opened the first trading session of the week on March 2.
Stock investors strongly sold off as soon as the power board was turned on. At the time before the end of the ATO order matching session, VN Index decreased by nearly 80 points and fell to near the 1,800 point mark. The power board at this time "stuffed" with floor-dropping codes at 7%, including many banking, securities, and real estate codes.
In particular, not outside the predictions of the entire market due to concerns about disruption of global oil supply, oil and gas and maritime stock groups simultaneously experienced a large wave in this morning's session when stocks raced to increase to the ceiling price from quite early when cash flow came here to take shelter.
However, after a moment of panic at the beginning of the session, the market quickly regained its composure when entering the continuous order matching session. For investors holding cash, this is another opportunity to buy cheap goods. Bottom-fishing money was quickly pushed into the market.
There was a time when the amount of goods sold off was absorbed and VN-Index regained its green color. Pulling the index, in addition to the group of stocks benefiting from Middle East tensions, there was also VIC code contributing more than 6 points of increase.
However, at the end of the morning session on March 2, VN-Index still decreased by 3.15 points to the threshold of 1,878.18 points. Market liquidity exploded with nearly 27,000 billion VND.
Amidst the geopolitical storm surrounding it, the stock market is facing a test of cash flow capacity and the ability to absorb peak-zone risks.
The market is being directly affected by the return of "risk-off" sentiment globally. Escalating geopolitical tensions between Iran and Israel along with US involvement have triggered a defensive regime, causing cash flow to flee stocks to find safe havens such as USD, gold and oil.
Concerns about disrupting the supply chain through the Strait of Hormuz have pushed crude oil prices to skyrocket, breaking the expected profit structure in the market. This explains why the oil and gas exploitation and service group unexpectedly benefited, while other businesses had to bear input costs.
Investors assess that the sharp drop at the beginning of the session was the consequence of a combination of 3 major pressures: the domino effect of margin freezing after a period of market excitement, the fear of inflation returning to narrow the room for monetary easing, and the defensive net selling and selling of Bluechip stocks by foreign funds.
Although the oil and gas group is booming, experts also remind investors to keep their heads cool, because this may just be a short-term reflex to oil price news, and if the conflict does not turn into a comprehensive crisis, this upward momentum will soon give way to a revaluation phase.
Although the index shows signs of recovery, the shortage of liquidity in recent weeks and the narrow market breadth show that cash flow is very cautious, only weaving into a few stocks with their own stories and not creating a spread.
The optimal strategy at this time is to abandon the purchasing mindset (FOMO) in stocks that have increased sharply, proactively realize profits to protect achievements when the index hits strong resistance. Current cash flow only prioritizes selection, and opportunities will belong to investors who know how to patiently watch to buy at low prices when the market fluctuates.
