Stocks break their upward streak

After four consecutive weeks of gains, the stock market started September down more than 15 points.

With 3 trading sessions in the week, the VN-Index had 1 session of increase, 1 session of deep decrease and 1 session of slight decrease.

Notably, on September 3, the market had its highest closing session ever at 1,696.29 points. On September 5, the VN-Index surpassed the 1,700-point threshold, but then fell sharply due to strong selling pressure.

VN-Index fell sharply in session 5-9 (screenshot).

At the end of the week, VN-Index decreased by more than 15 points (-0.91%) to 1,666.97 points. Market breadth remained quite positive, as short-term speculative cash flow shifted to stocks and groups that had not increased much. Steel, construction, industrial park, seafood, oil and gas, technology stocks stood out... Meanwhile, stocks that had increased a lot in the past period, such as securities, banking, and real estate, were under strong selling pressure in the last session of the week.

Market liquidity decreased sharply in the first two sessions and increased sharply in the last session of the week. Foreign investors continued to net sell strongly with a value of about 5,000 billion VND on the Ho Chi Minh City Stock Exchange last week.

Mr. Phan Tan Nhat, Head of Analysis Group of Saigon - Hanoi Securities Company (SHS), said that with the developments in recent sessions, the market increased with low liquidity, decreased with increased selling volume, VN-Index has signals of creating a short peak around the 1,690 - 1,710 point area. The market has signals of ending the outstanding uptrend to move to the adjustment and accumulation phase. Many codes in the market after a period of strong price increase also have similar signals, facing strong selling pressure, quite suddenly. Normally, the developments show that after a period of strong increase, surpassing the historical peak, the market will have a period of adjustment, accumulation, and re-testing the historical peak area that has been surpassed.

Experts from Asean Securities Corporation said that the market index will continue to fluctuate in the short term due to the influence of profit-taking, especially from foreign investors. The index's near support zone is the 1,630-1,650 point area, and the near resistance zone is 1,680-1,690 points.

With the short-term trading school, investors who are holding stocks should only maintain their current positions for stocks with safe prices and strong upward momentum. Meanwhile, investors with a high cash ratio can observe and wait for new disbursement points with leading stock groups such as banks, securities, real estate, etc. New purchases should only be made in the direction of partial disbursement.

With the long-term buy and hold school, increasing the proportion should be done when the market appears to decline, prioritizing observing the leading stocks with profit growth prospects in the period 2025-2026.

Source: https://hanoimoi.vn/chung-khoan-dut-mach-chuoi-tuan-di-len-715358.html