The stock market has just experienced 2 consecutive recovery sessions and the VN-Index closed the session on July 29 and regained the psychological milestone of 1,700 points. However, cash flow did not spread to many industry groups, and the pulling force mainly came from some large-cap stocks, especially the Vingroup group.
Entering today's trading session (July 30), experts and investors were somewhat worried about the information that the FED decided to keep the base interest rate unchanged for the 7th consecutive month, despite concerns about inflation. US and international stock markets simultaneously fell sharply. According to Scripps News, the Dow Jones index lost more than 1,100 points, equivalent to 1.9%, while the S&P 500 and Nasdaq Composite both fell more than 1.5%.
However, a contrasting picture has appeared on the Vietnamese stock market. Active buying cash flow began to enter the market more strongly from the beginning of the session, showing that investors' psychology is no longer too cautious. Cash flow spread from large-cap stocks and then spread to many industry groups.
At the end of the session, VN-Index reached nearly 1,745 points, an increase of nearly 40 points compared to the previous session. The entire HoSE floor had 258 gainers, 4.5 times more than the number of declining stocks. Liquidity also improved in points. The total trading value of the HoSE floor reached nearly 20,300 billion VND, an increase of 41% compared to yesterday's session.
Market sentiment also improved when foreign investors net bought about 677 billion VND, after 6 priority selling sessions with buying pressure focused on VIC, VNM and MSN codes.
Green color covered all industry groups but still focused on some large-cap stock groups. Among them, VHM stock was the stock that created the most positive impact on the market when contributing nearly 7 points to VN-Index, closing at 147,900 VND/share, up 5.6% with liquidity reaching nearly 858 billion VND, the 3rd highest in the whole market. Another stock of the same "Vin family", VRE, also had positive developments, increasing to the full range.
Experts expect VN-Index to maintain recovery momentum in the next session. However, for the upward momentum to become more sustainable, the market needs to record a clearer improvement in cash flow.
To confirm a sustainable recovery trend, investors should not only look at the index's increase but need to monitor the consensus between price and liquidity. Cash flow needs to spread to leading groups such as banks, securities, and at the same time, foreign investors' trading improves. If these signals have not yet appeared, the current increases are mainly technical.
Investors should not only look at the short-term increase of the index or investment efficiency in the short term. Instead, it is necessary to assess portfolio quality through industry structure, cash ratio, risk management capacity and investment efficiency in the long-term cycle.
The use of financial leverage needs to be strictly controlled in the context that interest rates have not really entered a downward cycle. Investors should prioritize stocks with high liquidity, good fundamentals and maintain margin ratios at a safe level.
