The market is showing positive signs of recovery after a steep sell-off last week. Although the money flow has decreased today, it is still at an average level before the sudden drop on Friday. This indicates that there is still plenty of money waiting to buy the dip, despite the strong fluctuations around the previous peak. Foreign investors have also unexpectedly raced with DGC and HCM.
The morning session started with a subtle increase, and even VN-Index had a momentum of decline due to inertia before the tug of war for balance. The morning session ended with a slight increase of nearly 4 points. However, the afternoon session was surprisingly vibrant. VN-Index closed at the highest level of the day, up 12.17 points (+1%), while it had fallen 15.31 points in the previous week. Therefore, today’s recovery session almost recovered all the losses from the selling frenzy.
However, the market breadth is not as positive as the scores suggest: HoSE ended the session with 270 gainers and 214 losers. The banking blue-chips contributed significantly to the upward momentum: BID increased by 3.08%, VCB increased by 0.67%, TCB increased by 2.74%, CTG increased by 1.28%. All 27 banking stocks on the exchanges, only 10 increased, with the above-mentioned group being the most positive. In addition to the banking sector, there were also GVR with an increase of 4.54%, FPT with an increase of 3.95%.
However, VN30-Index only increased by 0.84% today due to the absence of some major pillars, such as VIC down 1.33%, VPB down 1.28%. GAS, VNM, MSN, VHM are other major stocks that performed poorly.
The advantage in this recovery session lies more with the small and medium-sized stocks: Midcap increased by 1.59%, Smallcap increased by 1.12%. HoSE closed with more than 111 stocks increasing by more than 1%, while VN30 only contributed 8 stocks. The seafood stocks hit the ceiling today with representatives such as VHC, ANV, ACL. The securities group was also surprising with HCM, FTS, and DGC in the chemical sector. Dozens of stocks increased by over 2% today with high liquidity, all over 100 billion VND, showing the real effect of the money flow driving prices, not just a recovery session with low liquidity.
The total trading value of HoSE today reached 19,522 billion VND, although it decreased by 35% compared to the record session of the previous week, it is still relatively high. Specifically, if not counting the extraordinary session on Friday, the average trading value of the first 4 sessions of the week on this exchange was about 19,784 billion VND per session. In the 18 weeks before Tet, there was no week when the average trading value exceeded 19,000 billion VND per session.
It is worth noting that today’s positive liquidity session immediately follows the extraordinary session of the previous week. If the money flow had been “ambushed,” it would have been difficult for such a large trading volume to appear today. It must be that investors have returned to buy the dip or the new money flow that has been waiting has jumped in to buy.
Foreign investors also had quite active disbursement and large sales today. The transactions were selective, even accepting a bidding war for DGC and HCM – both stocks closed at the ceiling price. DGC had the highest net buying value on the market with 214.8 billion VND, and the buying volume from foreign investors accounted for nearly 29% of the total trading volume. HCM was bought with a positive 134 billion VND, and the buying volume from foreign investors accounted for 16% of the liquidity. Although strongly bought by foreign investors, the internal demand is the main driver. HCM set a record for liquidity with 31.98 million shares worth 884.6 billion VND. Although DGC did not set a volume record (7.5 million shares), it set a record for value with 788.5 billion VND.
In addition to the above-mentioned stocks, foreign investors had positive net withdrawals with HAH +35 billion VND, DBC +31.6 billion VND, BID +27.7 billion VND, HAG +26.3 billion VND, SSI +37.7 billion VND, HPG +37.4 billion VND, VND +26 billion VND, GMD +26 billion VND, GVR +24.1 billion VND. On the selling side, there were STB -173 billion VND, VPB -98.5 billion VND, MWG -81.7 billion VND, MSN -46.4 billion VND, PVD -35.4 billion VND, TPB -22.4 billion VND, DXG -20.3 billion VND. Due to the large volume of transactions, the net position for the whole session was only +33.5 billion VND on HoSE, which is very small. In addition, this group had a net buying value of 44.8 billion VND on HNX, focusing on IDC +31.5 billion VND and MBS +20.2 billion VND.
The differentiation in the recovery amplitude today is noteworthy. In the sell-off session of the previous week, a total of 196 HoSE stocks decreased by more than 1%, including 137 stocks that decreased by more than 2%. Today’s recovery level is good, but there are only 111 stocks that increased by more than 1%, including 73 stocks that increased by more than 2%. In other words, many stocks that increased today are still just normal recovery after a shock session and have not yet compensated for the amplitude.
