VN-Index under profit-taking pressure, what move for investors?

VN-Index has decreased continuously for the past 3 sessions, with continuous fluctuations occurring as investors' concerns spread across the market.

Market anxiety spreads

Market is strongly differentiated in the context of tug of war

Ms. Le Thu Hoai (38 years old, Thanh Xuan District, Hanoi ) said: "The market has not shown many signs of recovery, the liquidity has increased during the down sessions, showing that the selling pressure is dominant, so for now I still hold stocks with potential and disburse some stocks with signs of reversal based on information about the business situation and other information."

At the same time, in another development, Ms. Phuong Mai (42 years old, Cau Giay District, Hanoi) decided to reduce the proportion of some large stocks to buy more other stocks with the reason: "You shouldn't put all your eggs in one basket, so I decided to reduce the amount of stocks I hold to buy more other potential stocks at reasonable prices, this also helps me limit the risk of loss".

In fact, VN-Index ended a trading week in a tug-of-war that lasted throughout the week. The week started with two increasing sessions, helping VN-Index recover 19 points, but the market suddenly reversed with three consecutive decreasing sessions, causing the index to not improve after a week of trading.
VN-Index closed the week at 1,261.72 points (same number of points as 1,261.93 points a week ago).

Total market liquidity at the three exchanges reached nearly VND21,350 billion, down 32.4% compared to the previous session, of which the HOSE exchange was VND18,711 billion.

The market was strongly divided with 198 stocks increasing and 222 stocks decreasing. Of which, the VN30 group had 18 stocks decreasing, 9 stocks increasing and 3 stocks remaining unchanged.

Group of stocks strongly affecting VN-Index last week

Banking stocks create resistance to market growth (Source: SSI iBoard)

In particular, selling pressure continued in the Banking group, typically at: VCB (Vietcombank, HOSE), BID ( BIDV Bank, HOSE), MBB (MBBank, HOSE),...

In addition, foreign investors continued to net sell nearly 1,535 billion VND, equivalent to 40.94 million shares in the entire market in yesterday's session (May 31), increasing the negative sentiment and trend for the market. Focus on large codes: VHM (Vinhomes, HOSE), MWG (Mobile World, HOSE), VNM ( Vinamilk , HOSE),...

In total, foreign net selling value reached nearly 36,000 billion VND in the first 5 months. Foreign investors have had 4 consecutive months of net selling, this trend increased sharply in May, with a value of nearly 18,200 billion VND. At the same time, foreign investors had 10 sessions of net withdrawal of thousands of billions this month.

Explaining the recent market developments, expert Huynh Quang Minh, Head of Investment Consulting, Mirae Asset Securities, said that it was due to investors' concerns about economic information on exchange rates, interest rates, foreign net selling and the weak economic recovery.

Moreover, the market is lacking the driving force from pillar stocks to create waves. Although cash flow is still flowing in the market, there is high differentiation.

What signal for the market?

Forecasting for the coming time, Mr. Huynh Quang Minh said that the market needs more time for factors affecting the market to be resolved, helping the general sentiment to be positive again, so it is likely to remain sideways (moving sideways between support and resistance zones, not reaching a peak or bottom) with a wide amplitude and high differentiation. The prominent industry groups in the coming time will be Real Estate and Retail, Export.

Therefore, investors are advised to:

- Need to observe price action to decide whether to disburse or restructure or reduce the proportion of the codes currently held; consider accumulating through the K-Seven product (a solution to accumulate interest rewards of up to 7% after only 7 weeks, registered one time.

- Need to deposit and withdraw flexibly (keeping the interest rate unchanged) with the amount of cash you are holding to be able to make a profit while waiting for the market to have a signal.

- If you disburse at this time, you should disburse a large proportion for trading, and determine the mentality of being ready to cut losses if the stock code shows signs of reversing to a downtrend.

In addition, he suggested some stocks that investors might be interested in: MWG (Mobile World, HOSE), IDC (IDICO Corporation, HNX), BVS (Bao Viet Securities, HNX), CTS (VietinBank Securities, HOSE), ACB (ACB Bank, HOSE).

Source: https://phunuvietnam.vn/vn-index-chiu-ap-luc-chot-loi-dong-thai-nao-cho-nha-dau-tu-20240601175348477.htm