Clear differentiation, increasing adjustment pressure on the stock market at the end of October

Choosing stocks with real strength and limiting short-term fluctuations will be the decisive factor in helping investors prepare for the recovery in the coming time.

At the end of the last trading week of October, VN-Index stopped at 1,639.65 points, down nearly 43.5 points, or 2.59%. HNX-Index also decreased slightly to 265.85 points. This is the third consecutive week of adjustment, showing that the downward trend is still dominant when cash flow weakens, and the support from large stocks is not enough to pull the market.

In that context, many notable support signals have emerged from both international and domestic sources: Vietnam and the United States reached a framework agreement on reciprocal taxes at 0-20%; US-China trade relations cooled down after the meeting between the two countries' leaders; the US Federal Reserve (FED) cut interest rates by 0.25% as expected. Some businesses announced positive third-quarter business results.

However, such positive information is still not enough to help the domestic market reverse, as the adjustment pressure focuses on pillar stocks, especially Vingroup, Gelex and banking stocks.

According to Mr. Nguyen Tan Phong, analyst, Pinetree Vietnam Securities Company: "VN-Index is currently heavily influenced by Vingroup stocks, which have quadrupled since the beginning of the year. If the VN-Index corrects by 20-30%, the index may lose the 1,600-point mark, but the 1,570-point area is still an important technical support level that can help the market recover in the short term."

The differentiation between the industry groups was evident. While the real estate group fell the most with -4.22% (many codes such as CEO, DXG, PDR, DIG, DXS all fell deeply), the financial and industrial groups also adjusted simultaneously.

On the other hand, the energy group became a bright spot, with many stocks increasing strongly such as PVD, PVC, OIL, VTO or PVB. In addition, the information technology and communication services group continued to maintain positive momentum, shown by the codes VGI,FPT , CMG.

Market liquidity has decreased for many consecutive sessions and remained below the 20-day average, showing that defensive sentiment still prevails. Foreign investors net sold more than VND2,400 billion during the week, of which more than VND2,000 billion on the HOSE floor, creating significant pressure on the general sentiment.

Some stocks recorded notable fluctuations. KHG increased 19.05% during the week, setting a new 52-week high. In contrast, GEX fell sharply by more than 14%, marking two consecutive weeks of decline, reflecting the correction trend of the group of stocks that had increased rapidly.

Overall, the Vietnamese stock market has entered a period of deep differentiation and natural adjustment after a long period of growth. This is not only the result of profit-taking pressure, but also the right time to restructure investment portfolios, directing capital flows to businesses with good fundamentals, reasonable valuations and sustainable growth potential.

In the current tug-of-war context, maintaining a steady mindset, choosing stocks with real internal strength and limiting short-term fluctuations will be the decisive factors helping investors stand firm and prepare for the recovery in the coming time.

MIDDLE TEA

Source: https://nhandan.vn/phan-hoa-ro-net-ap-luc-dieu-chinh-gia-tang-tren-thi-truong-chung-khoan-cuoi-thang-october-post919933.html