Stock market faces low liquidity pressure

Gia Miêu |

The liquidity of the stock market has not yet shown a strong enough breakthrough to consolidate the upward momentum.

In recent trading sessions, the VN-Index has recorded 2 consecutive slight increase sessions even though the largest capitalization pair, VIC and VHM, both adjusted. The support for the market is that the banking group is returning to play a leading role and create momentum for the index.

However, liquidity has not yet shown a strong enough breakthrough to consolidate the upward momentum. Especially, in the context that VN-Index is currently approaching the strong resistance level of 1,900 points, the market has faced tremors.

This is reflected in today's trading session (July 2), the market has shifted to a state of fluctuation. The VN-Index is still trading sluggishly around the reference price thanks to the support of pillar stocks.

Closing today's trading session, VN-Index slightly decreased by 0.86 points (-0.05%) to 1,866.35 points with 122 gainers and 164 losers. Total trading volume reached 565.1 million shares, worth 17,237 billion VND. Of which, negotiated transactions reached nearly 112.5 million shares, corresponding to a value of approximately 5.335 billion VND.

The main driver of the market is still the Vingroup group of stocks with two codes VIC and VHM increasing by more than 1% and contributing a total of nearly 7 points to the general index. This is also the main factor helping the real estate stock group record an upward momentum in today's session even though most of the rest closed down.

In terms of capitalization, the VN30 group closed down more than 4 points despite having 20 declining stocks and only 5 increasing stocks. Among them, VIC increased best by 1.5%, followed by VHM increasing by 1.1%, SAB and VNM both increasing by 0.5%, VIB increasing by 0.3%.

In the short term, VN-Index is accumulating with a narrowing amplitude. The index currently has no breakthrough forecast and needs outstanding growth momentum to overcome this resistance zone. Currently, VN-Index is under adjustment pressure to around 1,850 points. If this support level is not maintained, the market may retreat to test the 1,800 - 1,830 point zone.

Current cash flow is not strong enough to confirm a sustainable upward trend, making it likely that the market will continue to be sideways in a narrow range in the following sessions.

Faced with the above developments, the optimal strategy is to maintain the portfolio proportion at an average level. For short-term investors, chasing buying actions need to be limited; instead, trading should be concentrated in the range of 1,860 - 1,890 points. Short-term cash flow can prioritize stock groups with separate support stories such as: state capital divestment, market upgrades, or resolutions promoting the economy.

For medium and long-term investors, the appropriate strategy is to take advantage of adjustments to the support zone to disburse partially. Stock groups recommended to focus on are businesses with good fundamentals, mainly belonging to the sectors: banking, securities, retail and public investment.

Investors are recommended to maintain a reasonable ratio. Capital flow should focus on stocks with good fundamentals, leading in strategic sectors and with outstanding growth along with the economy.

Gia Miêu
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