The unusual performance of the index made many investors panic and look for the reason, but the support from the banking pillar group and the gradually stable psychology helped the selling pressure slow down towards the end of the session.
Ending the series of fluctuations around the 1,300 point area, Vietnamese stocks recorded a session of intense fluctuations on July 17. Banking stocks rose, leading the wave, pushing the VN-Index to break out more than 10 points at one point. However, selling pressure suddenly spread across most large-cap stocks, causing the VN-Index to lose more than 24 points near the end of the session.
Notably, the bustling trading has pushed market liquidity to a sudden increase with trading volume exceeding 1.2 billion shares. The matched value on the HOSE floor alone reached nearly VND28,100 billion (equivalent to nearly USD1.1 billion), the highest in nearly a month. The bright spot was foreign trading when they turned to net buy more than VND550 billion on the HoSE floor.
The index's unusual performance caused many investors to panic and look for reasons, but the support from the banking pillar group combined with the gradually stabilizing sentiment helped the selling pressure slow down towards the end of the session. The VN-Index had a spectacular "retreat" to close the session with a decrease of 12.52 points (-0.98 %) to 1,268 points.
In addition, the pressure before the derivatives expiration session also causes the market to fluctuate strongly and unexpectedly. In 2022-2023, derivatives expiration sessions often have strong fluctuations and swing traders are very reluctant to trade on Wednesdays and Thursdays. After more than a year of stability, the derivatives effect reappears and affects the general market.
In addition, the fact that a series of real estate stocks “fell” from the bottom at the end of April made experts hypothesize that margin calls could occur in this group. With a large proportion, the decline of this group also somewhat affected the general market.
Commenting that the selling pressure is mainly due to the cash flow restructuring, Yuanta experts believe that the market's uptrend will remain stable but the differentiation will be strong. With the forecast of cash flow focusing on the two groups of banks and securities, VN-Index may continue to exceed 1,300 points in the short term.
Regarding strategy, the expert believes that there is no reason for investors to sell at all costs and withdraw from the market. With the upward trend still dominant but divergent, Mr. Minh recommends that investors should consider reducing the proportion of stocks that have increased a lot, and on the contrary, increase the proportion of groups that are attracting money such as banks and securities.
Source: CafeF
