The VN-Index ended a rather gloomy trading week and was the 4th consecutive week of decline. Although demand appeared to "catch the bottom" in the middle of the week, the recovery efforts were quickly overshadowed when selling pressure increased sharply towards the end of the week, causing the market index to lose the support level of 1,600 points.
Buyers were cautious, causing the market to gradually sink into red with a sharp decline in liquidity. In particular, in the weekend session, the selling side completely dominated, just a small supply is enough to cause the index to plummet by more than 15-20 points, led by the banking group and the Vingroup family.
At the end of the week, the VN-Index decreased by 40.55 points (-2.47%) compared to the previous week and stood at 1,599 points. The sharp decline accompanied by proactive selling pressure spreading widely across industry groups is a clear signal that the negative and cautious sentiment is covering the entire market. Most of the recovery efforts of previous sessions have been erased, showing that the sellers are completely dominating in the short term.
The overall liquidity of the market is still quite low, which makes investors worried. The trading volume on HOSE last week reached more than 4 billion units, down for the third consecutive week. If observing the weekend session alone, the volume increased compared to the previous 2 consecutive days, but mainly due to increased supply.
The investor's more cautious mentality in recent sessions has been explained by experts because the VN-Index is moving in a short-term downtrend. At the same time, sectors that regularly receive cash flow attention such as Banking, Securities, Real Estate, Retail - Consumer are all fluctuating and adjusting.
Commenting on market developments next week, analysts from Pinetree Securities Company (CTCK) said that in the short term, the market may continue to adjust to find balance. The pressure is likely to still come from pillar stocks. However, the Mid-cap group is showing more positive signs, even being able to create a short-term bottom.
It is likely that next week, the stock market will have a strong fluctuation to shake off the amount of weak goods, thereby activating the cash flow waiting outside. The necessary condition is that demand returns, then the market can have a technical recovery. Conversely, if cash flow remains cautious, selling pressure can spread to strong stocks, causing the index to retreat deeper to the 1,500-1,520 point range.
Experts from AIS Securities Company commented that the VN-Index is currently approaching the support level of the 20-week MA trend line. The overall liquidity of the market is still quite low, which is a concern. The next support level of the market will be around the 1,550 point area.
Investors should still take advantage of technical recovery sessions to restructure and continue selling stocks with signs of weakening, thereby bringing the portfolio ratio to a safe level. Only " selectively" hold potential stocks. Do not rush to buy and chase in the technical hoi bonus if any.
Asean Securities believes that market movements are affected by net selling pressure from foreign investors as well as the cautious short-term sentiment of cash flow (expressed through liquidity scale). The current fluctuations are opening up new buying opportunities for short-term traders and medium-term investors. The partial disbursement strategy should be applied, prioritizing adjusted purchase points. Investors prioritize observing the group of stocks that are shaking, adjusting in the Uptrend and the group of stocks that are recording RSI going deep into the after-sales zone.
