VN-Index has not escaped correction pressure

The gloomy trading market with differentiation in most industry groups, declining liquidity and selling pressure from foreign investors shows that VN-Index has not been able to break out.

At the end of the trading session on April 20, VN-Index increased slightly by 0.27 points, equivalent to 0.03% to 1,049.25 points. The entire floor had 179 stocks increasing, the remaining 176 stocks decreasing, and 72 stocks remaining unchanged.

HNX-Index increased by 0.76 points, equivalent to 0.37% to 206.61 points. The entire floor had 94 stocks increasing, 82 stocks decreasing and 53 stocks remaining unchanged. UPCoM-Index decreased by 0.26 points to 77.85 points. The VN30 basket alone recorded 13 stocks decreasing in price.

Liquidity dropped dramatically. The total matched value in the session reached VND8,112 billion, down 26% compared to the previous session, of which the matched value on the HoSE floor alone also decreased by 31% to VND6,626 billion. In the VN30 group, market liquidity reached VND2,403 billion.

Investment Comments

Phu Hung Securities: From a technical perspective, VN-Index had a slight increase. Trading volume decreased and remained below the 10 and 20 session averages, implying that cash flow is quite cautious.

The index is trending down below MA20, with MA5 cutting down MA20, showing that the index is in a correction phase in the sideway channel, with the target being the support zone around the lower channel, equivalent to the 1,000 - 1,020 point zone (March bottom).

Overall, the market has not yet escaped short-term correction pressure after the slight increase on April 20. Therefore, investors should keep their stock ratio at a safe level to limit risks from unpredictable developments of the general market.

Agriseco Securities: Agriseco Research believes that the net withdrawal trend will gradually increase before the holidays and the forecasted divergence in Q1/2023 business results has caused investors to maintain a cautious trading status since the beginning of the week.

With VN-Index approaching the lower border of the Bollinger band, a sideways trend, testing the 1,040 point zone, may appear in the coming sessions.

However, the analysis team still maintains the view that the index will hardly have a deep decline when it has absorbed a significant amount of negative information in the previous period. Investors can continue to hold the recommended portfolio and observe, waiting for clearer signals from the market.

Yuanta Securities: The analysis team believes that the VN-Index may continue to move sideways and may face correction pressure at the beginning of the session. Currently, cash flow is still mainly concentrated in small and medium-cap stocks. Short-term sentiment indicators increased slightly, but investors are still pessimistic about the current trend.

The short-term trend of the general market remains neutral. Therefore, Yuanta recommends that short-term investors can hold the current stock ratio after bringing the stock ratio to a balanced level in the recent trading sessions. At the same time, investors can temporarily stop selling and observe the market in the following sessions.

Stock news

- According to the World Bank report, Vietnam's economic growth is forecast to slow to 6.3% in 2023. The reason is that growth in the service sector is slowing down, prices and interest rates are rising, affecting investors and households. Growth is expected to increase to 6.5% in 2024 when Vietnam's key export markets such as the United States and China recover.

- In its latest report on Vietnam's economic development prospects, the Asian Development Bank (ADB) stated that due to the global recession, continued tightening of monetary policy and spillover effects from the Russia-Ukraine conflict. However, ADB experts said that China's reopening will help balance these unfavorable factors and Vietnam's economy is forecast to grow by 6.5% in 2023.

This forecast is lower than the 6.7% forecast that ADB gave in its previous report in September 2022. Accordingly, ADB assessed that public investment will be the main driver for economic recovery and growth in 2023.

- Major indexes on Wall Street continued to fluctuate in a narrow range as information on the financial reports of the first quarter of 2023 of enterprises was announced. Dow Jones fell 0.2%, while the S&P 500 and Nasdaq Composite fluctuated less than 0.05% in the previous trading session .

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