Stock market declines with low liquidity

Gia Miêu |

The stock market cannot have a truly sustainable recovery momentum without a breakthrough boost from large cash flow.

In yesterday's trading session (June 18), VN-Index had a session of explosive increase in points, conquering the resistance level of 1,820-1,830 points. However, the noteworthy point is the very strong differentiation in today's upward session. Cash flow increased mainly in the large-cap stock group Vin (VIC, VHM, VRE, VPL), while most other stock groups decreased.

This imbalance shows a lack of synchronous spillover when the portfolios of most investors have decreased. This has made investors highly cautious, and sluggish trading continued throughout today's session.

Closing the trading session on June 19, VN-Index decreased by 5.94 points (-0.32%), to 1,824.53 points. Total trading volume reached more than 608.5 million units, value 18,803.6 billion VND. Block transactions contributed more than 81.6 million units, value 3,469 billion VND. HOSE had 84 gainers and 205 losers.

Thus, at the end of the trading week, the VN-Index increased by 32.88 points, equivalent to +1.83% and ended the 4-week consecutive decline before that.

Regarding the level of impact, BID, MCH, VPB and MBB are the codes that have the most negative impact on VN-Index and took away more than 3.65 points. In the opposite direction, VHM, LPB, STB and TCX are the codes that maintained green color, helping the index increase by 2.45 points.

In today's session, the bluechip group continued to differentiate and almost closed with prices not changing too much, with an upward trend led by LPB when +2% to 48,000 VND and conversely VPB, BID, VRE lost slightly around 2%...

Pressure from weakening cash flow is making the market lack clear breakthrough momentum, predicting a scenario of fluctuating in a narrow range will continue at the beginning of the next session before waiting for confirmation signals from the resistance zone of 1,850-1,860 points or support of 1,830-1,840 points.

Although VN-Index maintained a strong resistance level, the net buying signal in many other stock groups has not been confirmed. Therefore, the opinions of many experts still maintain the view of standing aside, not rushing to return to a new net buying position, and continue patiently waiting for confirmation of cash flow spreading to many industry groups.

Short-term investors should maintain an average ratio, avoid chasing purchases and focus on regional trading, while paying attention to stock groups with their own story such as state capital divestment, market upgrades, economic development resolutions or offshore oil and gas cycles.

At the same time, medium and long-term investors can take advantage of adjustments to the support zone to partially disburse into industry groups with good fundamentals and high liquidity such as banking, securities, retail, public investment and oil and gas.

Gia Miêu
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