Stocks recover weakly, potential risks with short-term trading

The stock market experienced a relatively gloomy trading session in early October. Liquidity continued to decline to its lowest level since early May. Total trading volume decreased by 9.8% compared to the previous session, reaching more than 518 million shares, equivalent to VND11,505 billion. The VN-Index closed at 1,155.25 points, up slightly by 1.1 points, equivalent to 0.1%.

Market breadth was positive with 280 gainers outnumbering 201 losers. Of which, the seafood and chemical group led the recovery with many stocks increasing strongly such as ANV (+6.94%), FMC (+6.91%), CMX (+5.91%), DCM (+3.05%), DPM (+2.44%)... In addition, the construction investment group also had a positive reaction such as FCN (+4.45%), HHV (+4.76%)...

On the contrary, the banking group was the factor that had the most negative impact on the index with VCB (-1.14%), BID (-0.9%), TCB (-1.49%), TPB (-1.96%)...

Faced with the unclear market trend, foreign investors were quite hesitant. They returned to net buying with a value of more than 176 billion VND on HOSE, focusing on codes SSI (+83 billion VND), DXG (+50 billion VND), DGC (+44 billion VND)... On the contrary, they sold codes VPB (-33 billion VND), VIC (-22 billion VND), VCI (-17 billion VND)...

In the derivatives market, the VN30F2310 term increased by 6.2 points (+0.53%), the gap narrowed to negative 0.33 points compared to the VN30-Index. Trading volume decreased by 18.74% compared to the previous session along with a decrease in open interest. The development showed that speculative buying and selling positions in the session decreased sharply again. The negative gap of larger terms showed that traders were inclined towards the possibility that VN30 would continue to make a slight adjustment in the short term and were less optimistic about the VN30 trend in larger terms.

The market continues to maintain the mid-term support level of 1,150 points with 4 consecutive sessions of almost flat movement. Screenshot — The stock market continues to maintain the mid-term support level of 1,150 points with 4 consecutive sessions of almost flat movement. Screenshot

Forecasting in the coming trading sessions, BSC Securities Company believes that the tug-of-war trend may continue. The threshold of 1,165 points needs to be conquered for the index to return to a more positive trend.

From a technical perspective, experts from VCBS Securities Company commented that the VN-Index closed the session forming a Doji candlestick, showing investors' hesitation in the face of the market's unclear trend. In terms of the hourly chart, the two indicators MACD and RSI both have a sideways trend, indicating that demand is still quite timid and not enough to help the market recover well. In addition, in the daily chart, the ADX and DI- indicators are still at high levels, so the probability of the market continuing to decline should be taken into account.

VCBS assessed that although the general market is still shaking and the short-term trend is unclear, the differentiation is still clearly shown and looking for individual stocks. Short-term investors can take advantage of the increasing sessions to restructure and reduce their portfolios. Or they can also disburse to catch the bottom and surf with a low proportion of 10 - 25% of the account for stocks in industry groups that tend to recover better than the market.

Although the market is showing signs of recovery, SHS Securities Company still sees the risk that the VN-Index will continue to correct in the coming sessions. Short-term investors should maintain a low proportion and patiently monitor market developments. For medium and long-term investors, the market is likely to enter the accumulation zone, so they can continue to hold the current portfolio.

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