Stock trading session on October 4, VN-Index increased 10.5 points to 1,128 points
After a session of more than 37 points, plus a sharp drop in international stocks, many domestic investors were afraid to sell stocks right from the opening of the trading session on October 4, causing hundreds of stocks to drop sharply by 4-6%, VN-Index opened the range to fall more than 11 points to 1,080 points. Technically, this is the MA200 mark on the daily chart. If this threshold is not maintained, the index will signal entering a bear market.
However, this support level has shown its effectiveness in promoting buying power at low prices, counterbalancing selling power, thereby helping the market regain balance and then gradually recover.
Once again, the securities industry group showed its leading role when many codes in this group increased strongly. In particular, SSI continuously expanded its growth momentum, especially in the afternoon trading session, this stock sometimes jumped to the ceiling price when the market saw leaked information about SSI's sudden increase in Q3 profit.
However, "money-sensitive" stocks such as FTS and BSI were the ones that jumped the most, these two stocks increased to the ceiling throughout the afternoon trading session, while other stocks faced selling pressure at the end of the session so they could not close at the highest level, such as VND only increased by 3.2%, SHS increased by 6.5%, MSB increased by 5.3%... even though these stocks were previously pulled up close to the ceiling price.
The remaining stock groups mainly "followed" the market's recovery, so most of the increases were not too strong, such as key stocks in the oil and gas industry such as PVD, which only increased by 3.6%, PVS increased by 3.3%. The construction materials group saw an increase in the price of Hoa Phat Steel (HPG) and Hoa Sen Steel (HSG), which only increased by 1.6%.
Foreign investors returned to net buying with liquidity of 189 billion VND, which is also a positive point in the market. They focused on buying VIX, VND, and SSI.
Investors' cautious and worried psychology was clearly shown through the fluctuations during the session, and the bottom-fishing demand was not too strong. This caused the VN-Index to be unable to overcome the resistance zone of 1,135 - 1,140 points, but was pushed back below 1,130 points, along with a sharp decline in liquidity compared to the previous session.
Specifically, the VN-Index ended the session up only 10.5 points, equivalent to 0.95%, reaching 1,128 points. Similarly, only the HNX-Index closed at 230 points, up 3.52 points, and the UpCom-Index increased 0.7 points to 87 points.
Some securities companies also admitted that investors disbursed very little this session. This was clearly shown when liquidity on the HoSE floor was quite low with nearly 682 million shares matched, worth less than 15,000 billion VND.
Mr. Tran Minh Hoang, Director of Research and Analysis, VCBS Securities Company, expressed his opinion that the market has not yet been able to regain its equilibrium to have a long-term recovery. Therefore, the market trend in the next session is still very unpredictable.
"Investors need to maintain a cautious mindset, and should only "buy the bottom" or "catch a falling knife" in the next session with a small proportion of 10-20% of the account for stocks that show signs of attracting demand," Mr. Hoang recommended.
"Catching a falling knife" is a slang term in the financial market for the act of bottom fishing when a stock or other financial asset is at its lowest price or at the bottom of a downtrend, with investors expecting to profit when the price rebounds in the future.
This tactic is often used when investors believe that prices have reached their lowest point and will not fall any further.
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