The stock market experienced a week that severely tested investor sentiment. (Photo: Vietnam+)

The Vietnamese stock market has just experienced a volatile trading week, likened to a "roller coaster" ride, with a record-breaking drop at the beginning of the week and subsequent recovery efforts.

Strong profit-taking pressure on key blue-chip stocks caused the VN-Index to correct for the second consecutive week. Amidst this, "smart money" appears to be shifting significantly, seeking new opportunities in sectors that have already accumulated capital and possess their own growth stories.

Recovery efforts in doubt

The stock market has experienced a week of severe investor sentiment testing. According to Mr. Nguyen Thai Hoc, an analyst at Pinetree Securities Company, the market has gone through one of the most volatile periods in months. The direct cause stems from the information released by the Government Inspectorate regarding a series of violations in bond issuance activities, which has led to widespread pessimism.

"Investor sentiment became extremely pessimistic, causing the VN-Index to experience its sharpest decline in history, losing more than 94 points. Red dominated the entire market, with numerous stocks hitting their lower limit, even in sectors considered pillars," Mr. Hoc analyzed.

However, a bright spot emerged: the market did not fall into a prolonged state of panic. Strong buying pressure emerged in the following sessions, helping the index gradually stabilize.

Mr. Phan Tan Nhat, Head of Analysis Team at Saigon- Hanoi Securities Company (SHS), added a technical perspective: "After peaking at the 1,800-point level, the VN-Index faced downward pressure for the second consecutive week. However, the VN-Index recovered in two sessions last week, reaching around 1,620 points, with high divergence and reduced liquidity."

The market closed with the VN-Index at 1,683.18 points, down 2.77% from the previous week. Meanwhile, the VN30-Index fell 1.65% to 1,944.60 points. Liquidity on the HoSE increased by 17.5% compared to the previous week, indicating continued selling pressure, but also showing active capital flows seeking new opportunities.

"Choose wisely who you entrust your valuable assets to."

The most notable highlight of the week was the significant divergence and shift in capital flows. Selling pressure was concentrated on groups that had experienced rapid price increases recently.

Mr. Phan Tan Nhat pointed out that stocks and groups of stocks that had experienced a period of strong growth in the securities, banking, seafood, port, and construction sectors are now under pressure to correct and decline sharply.

Conversely, capital flows are gravitating towards stocks that have undergone a prolonged accumulation phase and possess strong fundamentals. Specifically, Mr. Hoc noted that the return of capital is primarily concentrated in technology stocks, real estate stocks, and a few individual stocks with their own supporting stories.

Accordingly, experts have highlighted several prominent sectors. Among them, the Technology and Telecommunications sector sawFPT unexpectedly surge after a period of correction. In addition, stocks in the "Viettel group" (such as VTP and CTR) also attracted investment. Furthermore, the Vingroup group saw VIC surpass its historical peak, while VHM and VRE halted their decline and recovered slightly.

"The period of strong growth that lasted from April until now is ending. Currently, the market is diverging in two directions: strong selling pressure on stocks that have risen sharply and have high leverage ratios, and good recovery on stocks that have undergone a prolonged correction phase, reached attractive price levels, and have positive business results."

Notably, foreign investors continued their net selling trend for the 14th consecutive week, with a value of VND 4,360 billion on the HoSE exchange, contributing to significant pressure on the overall market.

VN-Index retests the 1,700 point level.

Technically, the VN-Index is currently retesting key support and resistance levels. According to Mr. Phan Tan Nhat, the VN-Index will continue its recovery, retesting the price range around 1,700 points after a good recovery in the support zone of 1,620-1,630 points, and the next strong resistance level is 1,730 points.

Mr. Nhat also stated that in the derivatives market, the negative spread between futures contracts and the underlying VN30 index is widening, indicating that investor sentiment remains cautious and favors hedging positions.

Offering a more optimistic outlook for the coming week, Mr. Nguyen Thai Hoc believes the market will lean towards a gradually positive upward trend. Mr. Hoc explained that the VN-Index has shown clear technical recovery signals, along with strong buying demand.

However, Mr. Hoc also noted that a strong upward trend is unlikely to occur immediately due to the lack of widespread capital flow. It is possible that the market may experience a period of volatility or a slight decline at the beginning of next week to re-test demand before regaining a more stable upward momentum.

In the context of a market entering a phase of strong differentiation, investment strategies need to be adjusted accordingly. Mr. Phan Tan Nhat recommends that investors maintain a reasonable portfolio allocation. The investment target should be stocks with strong fundamentals and leading positions in strategic sectors with outstanding economic growth. Mr. Nhat emphasized that evaluating new opportunities should be based on the reasonable valuation range of the company and strong Q3 business results.

Furthermore, Mr. Nguyen Thai Hoc predicted that "smart" money would continue to flow into new sectors (such as technology, Viettel, real estate, and chemicals) – sectors that had undergone significant corrections previously and have positive business prospects.

According to vietnamplus.vn

Source: https://huengaynay.vn/kinh-te/thi-truong-chung-khoan-dong-tien-tim-kiem-co-hoi-moi-sau-tuan-day-song-gio-159192.html