Profit-taking pressure in the pillar stock group caused VN-Index to reverse sharply in the first session of the week. After increasing nearly 20 points in the morning session yesterday (September 7), the index suddenly turned down sharply in the afternoon. At the end of the session, VN-Index lost nearly 31 points, equivalent to 1.7%, to 1,821 points.
Notably, the decline occurred in the context of low liquidity, with the matched order value on HOSE not reaching 14,000 billion VND. This shows that demand is not strong enough to absorb the increased supply when the leading stock group reverses direction.
The diễn biến of the first session of the week clearly shows the weakness of the recent increase. Although VN-Index continuously went up, the quality of the increase was not really high when liquidity in the current area was significantly lower than the periods when the index had approached the 1,900 point mark. Meanwhile, the market breadth was also very poor, when cash flow mainly focused on the Vingroup group and some leading stocks, while most stocks were sideways or adjusted.
This phase deviation makes the market easily under strong impact when the leading stock group turns back. This is a "green shell, red core" state when the index still maintains at a high level but the internal strength is not commensurate. Yesterday's sharp decrease is a clearer proof of this, when large-cap stock groups simultaneously suffered selling pressure, while demand in the rest of the market was not strong enough, the decrease of VN-Index was quickly amplified.
The market is forecast to continue to struggle before finding a clearer direction, with the 1.820-1.830 point area playing a near support role and 1,840-1,850 points being the area to pay attention to when recovering.
TPS Securities Company (CTCK) believes that the sharp decline of the index needs to be viewed more cautiously when VIC stock contributed more than half of the points lost in the session. Liquidity is still low, so TPS Securities Company believes that the recent developments mainly reflect the caution of new cash flow rather than a widespread sell-off. Short-term risks have increased even so as selling pressure spread to many large industry groups and foreign investors returned to net selling.
TPS Securities Company assesses that the ability to hold important support zones in the coming sessions needs to be monitored further before assessing whether the market is qualified to return to the recovery trend or not.
Shinhan Securities Vietnam (SSV) also gave a comment that the decrease of more than 31 points does not fully reflect the situation of the entire market when most of the pressure comes from the Vingroup stock group. Liquidity is maintained low and no signs of sell-off have appeared, making the current diễn biến more seen as a correction after a period of increase.
SSV forecasts that VN-Index may still be under selling pressure but gradually regain balance as many stocks enter a state of accumulation, with a short-term fluctuation range of 1,800-1,850 points. Investors can take advantage of downtrends to disburse partially but should still maintain a reasonable cash ratio.
This securities company especially reminds investors to limit the use of margin to bottom-fishing because the market is still likely to undergo another test of the low zone. Recovery sessions can be used to restructure businesses with business results that do not meet expectations, while medium and long-term opportunities still prioritize businesses that maintain good profit growth and have appropriate valuations.
