After opening with a light green color, VN-Index turned down sharply due to strong selling pressure from domestic and foreign investors. Bottom-fishing demand increased afterwards, helping VN-Index have a time to turn around and recover.
And when some investors thought of a beautiful scenario that the market would have a spectacular reversal session, the supply force suddenly increased sharply, especially in the Vingroup's pillar stock group and the trio of state-owned bank stocks, causing VN-Index to turn down sharply again.
Closing the session on February 4, VN-Index decreased by 21.97 points (-1.21%) to 1,791.43 points with 167 gainers and 155 losers. Total trading volume reached 1,053.9 million units, worth 33,925.5 billion VND, a slight increase compared to yesterday's session.
Regarding foreign investors' transactions, the group of foreign investors continued to strongly net sell nearly 956 billion VND across the market. On HoSE alone, foreign investors strongly net sold nearly 957 billion VND.
On the buying side, HPG shares led with an impressive net buying level of 940 billion VND, followed by STB (160 billion VND) and MBB (73 billion VND). On the selling side, foreign investors dumped the most with FPT code about 585 billion VND, followed by VIC (568 billion VND) and VHM (330 billion VND).
The fact that VN-Index continues to lose the 1,800 point mark is considered an important test for market sentiment, because this is a technical support zone of great significance.
Experts assess that the stock market is struggling and lacks a clear trend, reflecting a relative balance between supply and demand. Signs confirming a breakthrough to the resistance zone or losing the support zone are needed to establish the next trend.
If widespread sell-offs appear, the risk of deeper correction may increase. Conversely, in case cash flow still maintains positive differentiation and focuses on individual stock groups, the market will show the ability to "separate" from the fluctuations of the index.
With the high margin in the market as it is now, in case the market enters a correction phase, it may make the level of correction stronger in the short term. Cash flow may also be more cautious in the period before the long holidays. The level of lending interest rates showing signs of increasing may negatively impact investor sentiment.
In the current period, short-term investors should maintain a medium proportion, limit chasing purchases in recovery phases, and prioritize short-term trading by region.
