The Vn-Index just had the most special trading session in 8 months with a record liquidity of 48,000 billion dong, equivalent to nearly 2 billion USD, across all three exchanges. This is the highest trading session of the market in over 2 years since 2021. Selling pressure occurred strongly on all three exchanges at the end of the session with 407 stocks decreasing in value compared to the number of stocks increasing.
Most sectors experienced strong adjustments, with Chemicals decreasing by 5.21%, Securities decreasing by 3.51%, Banking decreasing by 1.74%, Energy decreasing by 2.84%, Information Technology decreasing by 2.47%, Aquaculture, Construction Materials… also decreased by over 1%. Alongside this, the top stocks that affected the market today included GVR gaining 2 points, CTG gaining 1.90 points, VCB gaining 1.36 points, as well as GAS, TCB, FPT, VPB, DGC.
Foreign investors continued to sell heavily with 947 billion dong mostly contributed by selling VHM and DGC, and buying DIG and VRE.
Regarding today’s trading session, Mr. Nguyen The Minh, Director of Individual Customer Analysis at Yuanta Securities, emphasized that the nature of the market today is good. In the past period, the market has also increased significantly. Vn-Index has continuously tested the 1,268 point level, with many stocks increasing significantly during this period such as DGC, FRT… becoming stocks with excess supply, and prone to selling off. Meanwhile, this week there will be futures maturity, and on March 20th, the Fed will discuss interest rates, the US dollar is increasing again, and the exchange rate pressure is still uncertain.
“The market is mostly fluctuating due to investors’ caution with rumors, and everyone is afraid of loss, so they rush to accept selling at floor prices, creating a domino effect. Additionally, those who are holding cash are waiting for the market to decrease so that they can enter, which is why the liquidity reached a level of 2 billion USD,” Mr. Minh said.
According to Mr. Nguyen The Minh, the market has shown good differentiation. When it decreased by more than 30 points, real estate rallied with stocks in the Vin Group such as VHM, VIC, and VRE all pushing up the index at the end of the session, spreading the green color to many other stocks.
With the bright spot being good bottom-fishing demand, this adjustment phase will quickly end. In the case of a deep market decrease with high margin, it would be worrisome, but in the current context, the market has been increasing but the risk is low, the adjustment is healthy, and aims to continue to rise rather than liquidating and fleeing altogether.
“I maintain the viewpoint that in the coming sessions, the market will soon return to its upward trend, the upward trend of the main index has not been violated. If investors are holding a high proportion, they do not need to sell at this time because the trend has not been broken. However, if they missed selling stocks out of fear of losing, they can consider switching to stocks that have not increased yet because there is still short-term upside potential. For investors with a high cash proportion, this is an opportunity to get on board. The risk is not high enough to worry about creating a peak or two peaks,” Mr. Minh emphasized.
Similarly, Mr. Huynh Minh Tuan, Director of Mirae Asset Securities Headquarters, believes that a 2% decrease in the market is not surprising because the market has already increased significantly and needs negative news to increase the amount of shares available in the market.
A series of stocks that increased significantly in the past period, such as DGC and FRT, sank immediately, which reflects the fact that when bad news arrives, investors worry and sell off. However, the bright spot lies in the real estate group’s upward trend. Part of this is due to the valuation of this group over the past 5 years being below average or low, and there are still reasons for money to flow.
“There are two good points at present, one is that there is still money in the market, and two is that there are still attractive sectors. This is leading the trend of speculation and rational investment in the current context. However, several more trading sessions are needed to confirm the trend,” Mr. Tuan said.
Mr. Nguyen Hong Diep, CEO of VICK Joint Stock Company, believes that it is unlikely for a major collapse to occur. As long as a balance point is found along with official information, the market will recover according to the current macro trend. This correction phase is an opportunity for investors to participate as the market adjusts to more attractive price levels.
In 2024-2025, the stock market will shine thanks to various factors, including the Government’s determination to upgrade the market. Considering the medium term over 6 months, the stock market is consolidated by macro factors, recovering economy, Fed’s prospect of lowering interest rates… The threshold of 1,210 – 1,220 is a major support level that investors should participate in.
