Stock market commentary September 20: Stocks end their decline?

The stock market ended the trading day on September 19 with strong fluctuations and at times left the 1,200 point mark. However, instead of triggering a sell-off wave, the market saw bottom-fishing cash flow in the afternoon session, helping the VN-Index recover strongly and close at 1,211.5 points, down 0.31 points from the previous session. The HNX decreased slightly by 0.26 points to 250.22 points, while the index on the Upcom floor stopped at 93.07 points, down 0.1 points from the previous session.

According to Vietnam Construction Securities Company (CSI), liquidity increased positively again with VND23,250 billion (+17.88%) in transaction value on the HoSE. The appearance of bottom-fishing cash flow helped narrow the VN-Index's decline. Even the group of small and medium-cap stocks increased strongly such as chemicals (+3.04%), fertilizers (+2.44%), steel (+2.37%)...

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The stock market reversed at the end of the session on September 19, helping the VN-Index only decrease slightly when closing the trading session.

A not-so-positive point is that foreign investors continued to net sell more than VND375 billion on the HoSE. In particular, large-cap stocks are still the focus of this foreign sell-off, typically HPG (-VND140 billion), STB (-VND69.2 billion), HCM (-VND66.1 billion).

Commenting on the trading session tomorrow, September 20, BETA Securities Company believes that from a technical perspective, the VN-Index is showing signs of forming a short-term downtrend, a negative signal. However, the medium and long-term uptrend is still positive. In the current period, the 1,200 - 1,205 point area will play a strong support role for the market, the old peak area of 1,240 - 1,250 points is a strong resistance area. Therefore, the market is likely to need more time to accumulate before breaking out. Investors may be cautious before the US Federal Reserve (FED)'s decision on interest rates this week.

According to experts from SHS Securities Company, from a short-term perspective, the market has approached the short-term resistance of 1,250 points twice and is adjusting back to the support level of 1,211 points. The fluctuations and accumulation may continue, but it is expected that the level of volatility will soon narrow.

On the macro side, the FED will have an important meeting on September 20 and 21, Vietnam time, along with the decision on interest rates as well as policy orientation in the coming time, which are information that stock investors are interested in.

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