Cautious investor sentiment led to a drop of over 30 points in the VN-Index.

Cautious investor sentiment led to a sharp decline in the VN-Index, with liquidity remaining low.

Opening the trading session on May 20th, the market faced further pressure from negative developments as Wall Street experienced its third consecutive day of declines. Investor sentiment became cautious amid concerns about prolonged inflation, keeping US bond yields high, the US dollar strengthening, while oil prices remained above $110 per barrel.

Entering this morning's trading session, investors maintained a cautious sentiment, with both buyers and sellers primarily placing exploratory orders, resulting in slow trading and the VN-Index fluctuating within a narrow range around the reference point.

Meanwhile, while many oil and gas stocks turned green, the rubber sector remained mostly in the red, although selling pressure was not as strong as yesterday's session.

Notably, DPR managed to turn slightly green, while HRC continued to fall to its lowest possible price of 51,000 VND.

At the close of this morning's trading session, the real estate sector saw mixed results, with VIC (+1.16%), VHM (+1.91%), DXG (-5%), NVL (-3.89%), and CEO (-4%).

The banking sector was dominated by red, withSHB (-1.47%), TCB (-2.76%), HDB (-3.18%), VPB (-2.08%), MBS (-2.77%), ACB (-0.66%), and VCB (-0.93%). Similarly, the oil and gas sector saw declines of BSR (-3.53%), PLX (-0.35%), PVD (-2.7%), OIL (-4.94%), and PVS (-0.75%).

In the financial services group, VIX (-1.56%), SSI (-1.62%), VCI (-2.54%), VND (-2.36%), ORS (-2.36%), SHS (-1.69%), and MBS (-1.51%) saw declines. Similarly, in the chemical group, GVR (-4.79%), DPM (-1.86%), DCM (-2.24%), DGC (-4.21%), PHR (-2.75%), and DRI (-2.8%) experienced declines.

The VN-Index fell 31.06 points to 1,881.87 points (-1.62%) compared to the previous session. Similarly, the UPCoM-Index decreased by 125.3 points (-0.71%), equivalent to 0.89 points, while the HNX-Index increased by 258.54 points (-0.37%), equivalent to 0.96 points.

Market liquidity reached VND 13,423.28 billion, with 490,000 shares traded. Across the sector, 46 stocks rose, 269 fell, and 30 dropped to their reference price.

The market trading on the morning of May 20th. Photo: Vinh Hoang

According to experts at Kien Thiet Vietnam Securities Company, at the close of yesterday's trading session, the VN-Index formed a bearish "Bearish Engufling" reversal candlestick pattern, indicating that the previous uptrend is weakening. This "Bearish Engufling" reversal pattern appeared for the second time in about a week of trading, at a time when the index was near the strong resistance level of 1,945 points.

Warning signs of risk are appearing more frequently, suggesting a high probability that the VN-Index will experience a correction after eight consecutive weeks of gains.

Therefore, investors continue to maintain a cautious stance, limiting the opening of new buy and sell positions, and reducing their stock holdings in the coming sessions as the overall market rises.

According to experts at Vietcombank Securities Company, money continues to flow strongly between different sectors in the market, but this also creates significant volatility during trading sessions.

Given the somewhat increased short-term risk, investors are advised to consider realizing partial profits on stocks that have reached their short-term targets.

Additionally, it's possible to pre-screen opportunities to re-enter the market with stocks that have shown positive demand if the market's price movement narrows in the coming sessions.

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Source: https://baonghean.vn/dong-tien-than-trong-vn-index-giam-hon-30-diem-10337557.html