Weak money inflow, decline slows down but stocks have not hit bottom yet

After more than half a day of overwhelming selling pressure, the sparse cash flow appearing in the afternoon session helped the VN-Index narrow its decline, returning close to the reference area. The main index ended the day down 1.42 points, equivalent to 0.12% to 1,152.43 points.

Trading was gloomy with the matched value of VN-Index reaching 14,577 billion VND, down 9.22% compared to the previous session. The total trading value reached 15,897 billion VND.

Market breadth tilted to the negative side with 6/18 sectors gaining points, of which the strongest increase belonged to the oil and gas group, followed by utilities, retail... With the stock market, the uptrend in yesterday's session gradually differentiated with a series of codes decreasing by over 2% such as SSI, VND, VCI, SHS... In particular, FTS reversed the trend and hit the ceiling purple to 43,000 VND/share.

Foreign investors reversed to net sell more than 508 billion VND after 3 consecutive buying sessions. Today's selling momentum focused on GMD, VND, STG, SSI...

VN-Index today is almost flat with weak liquidity. Screenshot

From a technical perspective, experts from VCBS Securities Company said that demand at the end of the session helped VN-Index form a dragonfly Doji candlestick.

In terms of the daily chart, the indicators are still pointing down quite negatively and have only gradually broken sideways. This shows that the market's downward momentum has temporarily slowed down, but it cannot be confirmed that the VN-Index has created a short-term bottom here. If demand is maintained well, the main index can bounce back to the MA20 moving average and touch the 1,170 - 1,175 point area again.

Investors should continue to maintain a cautious mindset. Investors who still have a high proportion of stocks should take advantage of recovery sessions to restructure their portfolios. In addition, short-term investors who have bottomed out should only maintain a stock proportion of 10-30% of their account to manage maximum risk.

According to BSC Securities Company, in the coming trading sessions, the market may continue to fluctuate around the 1,150 point threshold to find a balance point after the adjustment. After that, the VN-Index will aim to retest the 1,165 point threshold.

Phu Hung Securities Company assessed that the stock market is still in a short-term downtrend after the increase on September 27. Therefore, investors should prioritize T+ transactions with low proportions and limit chasing high prices. In particular, priority should be given to stocks with good fundamentals, forecasted business growth in the third quarter and are in an oversold state.

Source