Widespread selling pressure, especially the great pressure from the bluechip stock group, caused VN-Index to turn down to below the 1,900 point mark in yesterday's trading session (May 11).
This is not surprising to many investors after the stock market went through a series of gaining days but in a "green shell red heart" state.
The nature of this increase is not due to stronger cash flow into the market, but because the market itself pulled points by the Vingroup group - VIC and VHM continuously playing the leading role in breakthrough sessions, while most of the remaining stocks stood still or slightly decreased.Investors are even more worried about not daring to disburse, causing low liquidity, just a focusing buying force on a few pillar stocks is enough to push the index up without the participation of a large market.
In terms of quantity, the capitalization of the Vingroup group in the session on May 11 reached a capitalization of about 110 billion USD, equivalent to the total capitalization of 28 bank codes on the market.A fairly high valuation level may be the reason for the short-term selling pressure in this group after a period of strong price increases overwhelming the general market.
Many opinions of experts agree that VN-Index is difficult to increase sustainably if there is no healthy correction beforehand.In fact, if the Vingroup group stops pulling or reversing direction, VN-Index will reveal a much less positive picture than what the index is reflecting.Meanwhile, foreign investors have not yet shown signs of stopping selling and if the net selling momentum continues, pressure on market sentiment will increase.
MBS Securities Company (CTCK) puts forward the view that the current market context is making it difficult for investors to find widespread profit opportunities.Technically, MBS believes that VN-Index sets a new peak, but with the current phase deviation, referring to the index is almost meaningless.In the scenario that pillar stocks continue to rotate, VN-Index can completely reach a new peak, however, the important thing at this time is whether cash flow responds or not, that is the signal investors expect.
MBS noted that although the VN-Index is in a new peak, it is not due to the stock market level.The mismatch between the index and the stock level shows that in the scenario where the pillars adjust and push VN-Index down, the downward pressure on stocks is also not large, mainly still fluctuating within the sideways accumulation range.
The 1,900 point threshold has been conquered, but real cash flow is becoming stricter. Investors need to maintain alertness to distinguish between the index's upward momentum and the "health" of the portfolio. In the period when the market operates according to the K-shaped pattern, chasing the VN-Index no longer brings optimal investment efficiency," MBS emphasized.
TPBS Securities Company believes that the market is likely to enter a short-term correction phase to rebalance supply and demand. However, in the context that the medium-term uptrend structure has not been broken, the current correction phase is assessed as healthy. Support zones around 1,865 points and 1,840 points are expected to play a role in absorbing selling pressure, while activating short-term demand to help the index gradually stabilize again.
Investors should prioritize risk management strategies and maintain a reasonable proportion of stocks. Short-term cash flow is likely to have a stronger differentiation trend, so priority should be given to holding stocks with good accumulation prices, medium-term trends that have not been broken and still maintain a state of attracting cash flow.
