Returning cash flow helps stock market recover after 4 weeks of decline

Photo caption — Customers transact at the headquarters of Bao Viet Securities Company in Hanoi . Photo: Tran Viet/VNA

Investors remain cautious

Right in the first session of the week (November 10), VN-Index was under strong profit-taking pressure, falling 18.56 points to 1,580.54 points. However, bottom-fishing cash flow appeared from the pillar group, causing the index to increase by 38.25 points in the mid-week session, closing at 1,631.86 points - the strongest recovery in many months. The remaining sessions were balanced, helping VN-Index end the week at 1,635.46 points, up 36.36 points, equivalent to 2.27%.

Liquidity remained around average, with trading value ranging from VND23,000 to VND24,700 billion per session, reflecting that investors were still cautious, only disbursing when the price level became attractive. During the week, the real estate group recovered clearly with NVL increasing strongly, while VHM, VIC, VRE also contributed significantly to the increase of VN-Index. The oil and gas group became an important support at the end of the week, with PVD hitting the ceiling, PVS and GAS maintaining green. Gelex ecosystem stocks such as GEE, GEX, CII, VSC traded actively, attracting cash flow during the technical recovery.

Steel and chemical groups also recorded positive developments, notably HPG and DGC, while the communication services group decreased slightly. Last week, 18 out of 21 industry groups increased points, led by insurance up 7.08%, food - consumer goods up 6.96% and retail up 5.46%.

Expert Dinh Viet Bach from Pinetree Securities Joint Stock Company commented that the sharp decline at the beginning of the week was largely due to the echoes from previous corrections. The bottom-fishing demand clearly appeared in the middle of the week, along with the expectation of upgrading the market, helping to improve the general sentiment. Cash flow during the week shifted from large-cap stocks to mid-cap stocks in oil and gas, chemicals, fertilizers and industrial zones.

Vietnam Construction Securities Joint Stock Company (CSI) assessed that the VN-Index has confirmed a short-term bottom at 1,580 points. Last week, the index recovered on a low liquidity basis, only 54.2% of the 20-week average, with a clear differentiation of cash flow. CSI believes that the current period is suitable for a partial buying strategy, prioritizing mid-cap stocks in the oil and gas, chemical, retail and construction industries. The market needs another explosive session to confirm a clear uptrend.

Mr. Dinh Viet Bach also noted that VN-Index is likely to test the 1,600-point zone in the first sessions of next week; if it maintains this zone, the uptrend will be consolidated, but if it loses, the index may fall to the 1,500-1,550-point zone.

Dow Jones and S&P 500 fall, Nasdaq recovers slightly amid Fed rate concerns

While the VN-Index searched for a technical recovery, US stock markets fluctuated strongly last week, reflecting mixed developments and concerns from global investors.

The Dow Jones Industrial Average closed down 309.74 points on November 14 at 47,147.48, the S&P 500 lost 3.38 points to 6,734.11, while the Nasdaq Composite edged up 30.23 points to 22,900.59. The recovery in tech money was not enough to offset selling pressure from concerns about the US Federal Reserve's interest rate path.

Investors on Wall Street had to balance expectations of the reopening of the US government with the risk of inflation, causing the indexes to continuously diverge during the week. Technology stocks, especially AI-related groups such as Nvidia, were under strong selling pressure, while value stocks such as Goldman Sachs and UnitedHealth maintained their gains, creating a mixed market picture. The prospect of the Fed cutting interest rates fell to 46% according to the FedWatch tool, directly affecting the valuation of technology stocks.

Overall, the US and Asian markets reflected a strong tug-of-war with opposite trends, as investors weighed the opportunity to buy at the bottom and the risk of monetary policy. Asian stocks, from Tokyo, Hong Kong, Shanghai to Seoul and Manila, fell 1-4% in the session on November 14, following the sell-off from Wall Street, with the focus still on the upcoming interest rate decisions of the Fed and the prospect of global technology growth.

Source: https://baotintuc.vn/thi-truong-tien-te/dong-tien-tro-lai-giup-thi-truong-chung-khoan-hoi-phuc-sau-4-tuan-giam-20251116151925781.htm