Stocks continue to adjust, investors are cautious when using margin

VN-Index once again missed the 1,300-point mark this week, although there were times when the market felt like it had surpassed its peak very steadily. The market had a week of slight increases and cautious trading due to the derivatives expiration session as well as the restructuring of ETF portfolios.

One of the reasons why the market has not been able to make a strong breakthrough is that cash flow is still tending to concentrate on small-cap stocks, while large-cap stocks are recording very strict selection of cash flow. Cash flow continues to favor stocks that are receiving global enthusiasm, such as technology and telecommunications.

Foreign investors continued to net sell over a thousand billion VND per session during the week from June 17 to 21, with bluechip stocks being the focus of selling, especially FPT stocks, which accounted for 1/4 of the net selling value. However, according to experts, because the proportion of foreign investors in the stock market is no longer as high as before after the strong development of individual investors in recent years, the influence is no longer too great.

In addition, the capital flow of ETF funds in general has been showing more positive signs recently. Specifically, the net selling volume of foreign investors in domestic ETF funds in May decreased significantly, to only VND 750 billion, compared to nearly VND 2,600 billion and VND 2,800 billion in March and April. In the first half of June, foreign investors are currently only net selling about VND 240 billion of domestic ETF funds. In the past, the capital flow of ETF funds often had similarities with the trading trends of foreign investors. Therefore, experts expect that foreign investors will soon disburse again in the future when the macro picture is more positive.

Currently, many investors in the market are concerned about the possibility of a false peak, but when considering the cycle of the index, combined with the perspective of recent inter-market developments, some experts still believe that the market situation is not negative, especially when the economic context has improved a lot, and assess that this is not the time to create a big peak, but rather the possibility of just an accumulation period after surpassing the peak. As long as the selling pressure does not increase when the points continue to decrease, the signal will not turn bad.

The increase and surpassing the peak of 1,300 points is not too big a problem for the market, but for investors, the question is investment efficiency because there are too many investment opportunities and choices even though the market has not entered a "big wave".

Dr. Nguyen Duy Phuong, Investment Director of DGCapital, said that investors should note not to use margin during this period because of the high volatility leading to high risks. For investors with a high proportion of stocks and large margins, they should still restructure when the market recovers. As for medium and long-term investors, with a proportion of cash and no leverage, they can average the price during market declines, especially focusing on potential and fundamental stock groups such as technology, new technology, etc.

Source: https://laodong.vn/kinh-doanh/chung-khoan-tiep-tuc-dieu-chinh-nha-dau-tu-than-trong-khi-dung-margin-1356469.ldo