In today's trading session, July 16, the cash flow flowed strongly into the stock market in the afternoon session, focusing on large-cap stocks along with the net buying power of foreign investors, helping the market turn around and increase sharply.
Thus, after a "lost breath" session due to strong profit-taking pressure yesterday, the VN-Index returned to an impressive increase streak. The increased cash flow at the end of the afternoon session pushed the VN-Index up nearly 15 points at the end of the session on July 16, thereby returning to the peak of 1,475 points. The matched value on HoSE continued to reach an impressive figure of VND 27,473 billion (more than 1 billion USD).
Foreign investors continued to trade positively in today's session with a net buying value on the HoSE of more than 233 billion VND. This is the 11th consecutive net buying session of foreign investors on the HoSE.
In terms of impact, VIC, CTG, HPG and VCB are the stocks that have the most positive impact on the VN-Index with an increase of 8.1 points. Green covers all industry groups. In particular, the real estate industry is the group with the best growth momentum in the market with 2.21% mainly coming from VIC (+5.2%), VHM (+0.69%), VRE (+2.31%) and KBC (+0.15%).
Talking to investors at the program "Vietnam and indicators: Prosperous finance" on July 16, Mr. Tran Hoang Son, Director of Market Strategy, VPBank Securities Joint Stock Company (VPBankS) shared the view that investors should not speculate on the market peak.
"When the market has entered a period of rapid increase, there is an excess increase. In all the hot spans of increase, investors cannot predict how much it will be," said Mr. Son.
There are often two states in the market: excessive optimism (like the bottom in April) and excessive optimism as at present. The current situation, the market is optimistic and some technical indicators have become quite hot. Therefore, during this period, investors should let the market develop, then monitor signals such as the candle, technical indicators to make decisions.
VPBankS experts said that due to the "hot" increase, the market can reach any milestone, especially when leading stocks like VIC are in a very strong uptrend. Investors should not rush to predict which short-term adjustment area is and should wait for a technical signal to confirm the perspective.
Assessing the overall market health, Dr. Nguyen Duy Phuong, Strategic Investment Director, affirmed that the upward trend in the medium and long term is quite clear given the internal strength and macro policies of Vietnam. However, in an uptrend, the market also often faces short-term corrections, typically in 2021, although the market increased by more than 35%, there were no less than 5 times the market had corrections above 5%.
"Current period, cash flow is quite strong, leading to industry groups and stocks being dragged back and forth, investors need to have a clear investment strategy, limiting FOMO when the market is hot," said Dr. Nguyen Duy Phuong.
