Stock market conquers 1,700 point mark but lacks necessary spread

VN-Index increased by 10.68 points

Specifically, at the end of the session on December 1, the VN-Index increased by 10.68 points, equivalent to 0.63%, reaching 1,701.67 points. The VN30-Index also increased by 9.64 points, to 1,933.56 points, showing that the leading role of the large-cap group continues to be maintained.

The UPCoM-Index also edged up 0.13% to 119.14 points. On the contrary, the HNX-Index fell 0.77% to 257.91 points.

Total market liquidity reached over VND22,495 billion, with HOSE alone recording nearly VND21,042 billion, showing strong cash flow differentiation. Foreign investors net sold over VND120 billion, continuing to put pressure on market sentiment.

The focus of the trading session was on the Vin group of stocks as this group contributed mainly to the increase of the VN-Index. Accordingly, VIC increased by 3.65%, VHM increased by 2.72%, VPL increased by 6.95% and VRE increased by 1.9%; in total, it brought about 14 points to the index - higher than the actual increase of the VN-Index. This development clearly showed the role of "pulling the pillar", keeping the market pace in the context of the general level not being too positive.

In addition to the Vin group, some blue-chip codes also contributed to the general green color such as MSN up 1.81%, VNM up 1.41%, SAB up 5.6%, GAS up 3.15%, PLX up 1.61% orSHB up 1.19%. The VN30 basket recorded 16 codes increased and 14 codes decreased, reflecting the differentiation but still leaning slightly towards the positive trend.

Despite the strong increase in leading stocks, the overall market is still under significant pressure from the banking group. TCB fell 1.63%, LPB fell 1.44%, HDB fell 1.56%, while CTG, TPB,and ACB also fell over 1%. This development prevented the pull from the pillar group from spreading to the rest, causing the market to remain in a state of differentiation.

The breadth of the HOSE floor tilted to the downside with 135 stocks increasing and 178 stocks decreasing, of which 95 stocks decreased by more than 1%. Liquidity decreased by 12% compared to the session at the end of last week, to only nearly 16,174 billion VND, the lowest level in 6 trading sessions. This shows that the 1,700 point mark, although conquered, has not yet created enough excitement to trigger strong cash flow.

The group of small and medium-sized stocks continued to trade inactively. Midcap decreased by 0.57%, Smallcap decreased by 0.29%; reflecting the cautious sentiment of retail investors. Only a few codes with good liquidity still broke out such as GEE increased by 6.95%, DBC increased by 3.19%, TLG increased by 6.85%, BAF increased by 2.22% or VTP increased by 2.63%.

Foreign investors continued to increase their net selling activities with a total value of VND298.5 billion on HOSE. Of which, VHM was sold the most with VND227.7 billion, followed by VIC (VND162.2 billion), VCB (VND64.7 billion), HDB (VND46.1 billion) and TCB (VND44.9 billion). In terms of net buying, foreign investors focused on some large codes such asFPT , MSN, VNM, VPL, VPB, SHB and VJC.

The shift in foreign capital flows shows that foreign investors are still cautious, prioritizing liquidity in large-cap stocks but have not really expanded to mid- and small-cap stocks.

According to Tien Phong Securities Company (TPS), VN-Index is moving according to the Falling Wedge model, with the medium-term target towards the 1,800 point area if selling pressure at the 1,700 point area does not increase suddenly and cash flow continues to be stable.

Phu Hung Securities Company (PHS) commented that if the spread improves, the index could head towards the 1,750 point area; on the contrary, a prolonged strong divergence could create correction risks. The important support level was raised to around 1,640 points.

Meanwhile, Yuanta Vietnam Securities Company (YSVN) believes that the VN-Index may continue to move towards the resistance of 1,725 points this week thanks to cash flow focusing on large-cap groups. Short-term sentiment remains in the optimistic zone, strengthening confidence in the short-term uptrend.

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