The Vietnamese stock market has just experienced an unprecedentedly explosive trading session, with the strongest increase in history in absolute points yesterday (April 8th) after receiving good news about market upgrades.
Although not enough to say much about the medium-term trend, according to experts, yesterday's increase was still important in relieving some of the psychological pressure weighing on the market, especially in the context that most of investors' accounts have not yet escaped the state of losses after the recent adjustment.
However, many forecasts suggest that the VN-Index is approaching the resistance level of 1,780-1,790 points, so there is a possibility of sideways movement and the market may experience fluctuations.
That was true when entering the morning trading session today (April 9), the VN-Index turned around and adjusted right at the opening due to increased selling pressure. Although the decrease was not too large, the red color prevailed on the electronic board, causing the VN-Index to fluctuate below the reference level and fluctuate around the price range of 1,750 points.
Closing the morning session on April 9, VN-Index decreased by 17.62 points to the threshold of 1,738.93 points. The VN30 index also turned down by 15.85 points to the threshold of 1,915.16 points. Liquidity on HOSE reached more than 12,000 billion VND.
It can be said that in this morning session, if it were not for the support from the real estate group and some pillar stocks, the decrease could have been even deeper. Among them, NVL, VHM, DXG stocks and a series of bank stocks TCB, LPB, STB, SSB are the main pillars for VN-Index. MSN also contributed to the group increasing points. Top 10 stocks pulling VN-Index are contributing nearly 4 points of increase.
In the real estate group, only VIC shares decreased slightly this morning, although the decrease was quite slight, but combined with the size of this code, the impact on the market was not small.
The oil and gas group is sinking into red. BSR, PLX, PVS, PVD, OIL... stocks decreased by 1-2%. The information technology group also had a similar development. FPT, CMG, ELC... recorded a slight decrease.
It can be seen that the most important driving force behind the VN-Index's explosive session came from the information that the US and Iran announced a 2-week ceasefire, thereby helping investor sentiment to be less tense in the face of geopolitical risks. Along with that, positive signals from the mid-term report of FTSE Russell related to the story of market upgrades also contributed to further strengthening excitement.
However, not all strongly rising stocks in the session mean that the short-term trend has truly reversed sustainably. Investors need to clearly distinguish between stocks that are moving in a short-term uptrend and stocks that only rebound in a technical form after a previous deep decline.
An analyst from Pinetree Securities Company believes that the upgrade can be visualized as the market putting on a "new coat" that is more beautiful. However, if the "internal health" has not really improved, from liquidity, interest rates, corporate profit growth to the level of diversification of goods in the market, the "new coat" itself can hardly help the market recover immediately.
Therefore, investors should not expect too much that the upgrade story will create an immediate reversal for the market, in the context that large cash flows in the world are still prioritizing safety in developed markets.
