The stock market entered June recording continuous adjustments with 3 consecutive weeks of losing points due to increased profit-taking pressure in the large-cap stock group. This development is not too surprising after a period of strong increase, but the point to note is that the adjustment takes place in the context of sharply reduced liquidity and differentiated market breadth.
In the morning trading session today (June 8), selling pressure continued to appear widely, causing the electronic board to sink into red and VN-Index to reverse to decrease.
Selling pressure continued to increase sharply towards the end of the session, causing VN-Index to lose nearly 40 points and break the resistance level of 1,800 points. At the end of the morning session, HOSE had 255 declining stocks, more than 5 times the number of increasing stocks (48 stocks), VN-Index decreased by 39.68 points (-2.16%) to 1,799.22 points. Total trading volume reached nearly 321.7 million units, worth 8,074 billion VND.
The VN30 group closed the session down more than 37 points when 28 stocks decreased and only 2 stocks remained green, LPB increasing by 2.7% and PLX slightly increasing by 0.1%.
Meanwhile, VIC retreated deeply and closed the session down 4.4%, while VHM decreased by 4%, VRE decreased by 3.8%. VIC-VHM alone took away 20 points of the market.
The banking and securities groups continued to extend the decrease range towards the end of the session when most codes fell deeper. Among them, the codes with the most active liquidity in the market, including VIX down 4.5% and matched 28.1 million units, SHB down 2.1% and matched 20.5 million units, ACB down 3.3% and matched 16.15 million units, VND down 4% and matched 14.7 million units.
In the short term, VN-Index is likely to fluctuate, finding a balance point to determine the next trend. The area of 1,830 - 1,850 points can be considered a short-term balance area, while the area of 1,800 points is a more notable support if selling pressure continues to increase.
In the opposite direction, the market needs to overcome the resistance zones of 1,880 - 1,900 points, accompanied by improved liquidity and better spillover between industry groups, to confirm that the recovery momentum has a solid enough foundation.
Experts from Asean Securities Company believe that, in the base scenario, the market is likely to maintain a state of tug-of-war in a narrow range at the beginning of the session before shaping a clearer trend towards the end of the day. With this context, short-term investors should maintain an average proportion, avoid chasing purchases in recovery phases and focus on trading in the range of 1,830-1,840 points (support) and 1,850-1,860 points (resistance). At the same time, prioritize stock groups with their own story such as state capital divestment, market upgrades,...
According to TPBS Securities Company, if cash flow continues to be maintained at a low level, the market is likely to need more time to accumulate and consolidate the price base before forming a clearer upward trend, with the nearest support zone lying around the 1,800 point mark. Investors should maintain a reasonable proportion, limit chasing purchases when liquidity has not improved. Increasing proportion should only be implemented when VN-Index exceeds short-term resistance zones with the consensus of cash flow.
