In yesterday's trading session (July 6), VN-Index had a declining session accompanied by a strong increase in liquidity, the matched order volume exceeded 35% compared to the 20-session average. Cash flow distributed to the group of declining stocks had a session that completely overwhelmed the group of increasing stocks, showing that selling pressure is increasing very strongly.
Deep decline accompanied by high liquidity and cash flow allocated to the group of overwhelmingly decreasing stocks is showing less positive signals for the upward trend.
Entering this morning's trading session (July 7), selling pressure somewhat slowed down, but the VN-Index has eased its decline as the red color expanded in the bluechip group, with the VIC-VHM pair losing nearly 2%, causing the greatest impact. Almost no hot spots attracted significant demand, as liquidity is still quite weak.
Selling pressure continued to occur widely at the end of the morning session, causing red color to expand on the electronic board. At the end of this morning session, VN-Index decreased by 15.68 points (-0.85%), to 1,827.82 points. Total trading volume reached more than 219.3 million units, worth 5,668.7 billion VND. Block transactions contributed more than 24 million units, worth 629 billion VND. On the electronic board of HOSE, 80 gainers and 215 losers were recorded.
Vingroup and MSN stock groups led the decline when losing from 1.8% to 2.6% and caused VN-Index to lose more than 13 points. Red color also covered many other bluechips with a decrease of only around 1%. Against the trend, only some bank stocks remained such as LPB with a fairly high increase of +2.7% to 52,700 VND, while MBB, ACB, STB, HDB only increased slightly below 1%.
With VN-Index falling below the support zone of 1,830 points after a widespread strong selling session, many securities companies recommend that investors not rush to increase the proportion, prioritize reducing leverage and observe the reaction of cash flow.
CSI Securities Company (CTCK) gave the view that the market's decline gives a bad signal, breaking the accumulation trend of many previous sessions and is highly likely to pull VN-Index to retest the support level of 1,820 points in the next session. With this signal, it is necessary to prioritize risk management, limit new purchases, and even need a recovery in the next session to reduce the proportion of stocks and wait for the 1,820 point mark to make a buy decision.
According to Yuanta Securities Company's assessment, if VN-Index maintains the 1,830 point mark, the index may recover and fluctuate in the 1,830-1,885 point range this week. Investors can lightly buy stocks that still maintain an upward trend in the banking, securities or water-defending groups, and at the same time take profits and reduce their proportion as the index moves up to the 1,880-1,890 point range.
Saigon - Hanoi Securities Company (SHS) also believes that market diễn biến becomes less positive when many stocks are suddenly under strong selling pressure with a sudden increase in trading volume. According to SHS, VN-Index may recover back to the 1,850 point zone in the coming sessions. However, the short-term trend will only improve when the index surpasses the downtrend line. If it does not maintain support around 1,830 points, VN-Index may continue to adjust to the 1,800 point zone.
