VN-Index lost its mark after a week of trading

The Vietnamese stock market ended the trading week of November 3-7 with many fluctuations when the VN-Index officially lost the psychological support level of 1,600 points. This was the fourth consecutive week of decline for the market, with a total decline of nearly 200 points, showing that cautious sentiment still prevailed among investors.

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Right from the first session of the week (November 3), widespread selling pressure caused VN-Index to lose more than 20 points in just the first session when the phenomenon of cross margin calls appeared. Pessimistic sentiment covered the entire market, causing demand to weaken sharply.

However, when the VN-Index retreated to the strong support zone around 1,600 points, bottom-fishing demand quickly appeared, helping the index rebound nearly 40 points in the session on November 4. Securities and real estate stocks, after a correction period of more than 20%, became the focus leading the recovery.

However, the euphoria only lasted for a short time. From mid-week, demand weakened significantly, while the selling side gradually gained the upper hand. Liquidity decreased, and red covered the entire market. Notably, in the last session of the week, just a small amount of supply was enough to cause the VN-Index to plummet by 15-20 points, mainly due to pressure from banking stocks and Vingroup stocks.

Mr. Dinh Viet Bach, analyst, Pinetree Securities Vietnam Company said: “It is noteworthy that the selling pressure often increased sharply after 14 hours, causing investors' psychology to be challenged. Many stocks that had gone against the market trend last week turned around and fell sharply, showing a "compensation decrease" trend after a period of hot growth. Short-term selling pressure is still dominant, causing the market to shake strongly. However, in the medium and long term, the basic uptrend has not been broken. This shows that the market still has room to recover in the coming period, especially for investors with a long-term vision."

Sharing the same view, BETA Securities Company recommends that investors should take advantage of deep corrections to accumulate leading stocks with strong financial foundations. Reasonable capital allocation and enhanced risk management are key factors to help optimize profits when the market enters a more stable phase.

Commenting on the trend next week, Mr. Dinh Viet Bach said that the market is in the process of finding a balance zone after a strong correction. In the short term, selling pressure may continue, focusing on pillar stocks such as banks, Vingroup stocks and codes in the VN30 basket. However, mid-cap stocks are showing more positive signals, with the possibility of forming a short-term bottom.

Next week, in a positive scenario, the market may experience a strong shake-up to shake off weak stocks, thereby activating the cash flow waiting outside. When demand returns, the VN-Index may experience a short-term technical recovery. On the contrary, in a negative scenario, if cash flow continues to be cautious, selling pressure may spread, causing the index to fall deeper into the 1,500-1,520 point range.

At the end of the trading week, VN-Index fell more than 43 points (equivalent to 2.65%), down to 1,599.1 points, marking four consecutive weeks of decline. Although the correction trend continues, experts say the market is in a self-adjustment phase to regain equilibrium, before entering a new accumulation cycle.

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Source: https://nhandan.vn/vn-index-mat-moc-sau-tuan-giao-dich-post921639.html