Lack of positive news hits market
Lack of positive news hits market
Vietnamese shares tumbled on Tuesday as a lack of supportive business information dampened investor confidence in the market’s short-term growth potential.
The benchmark VN-Index on the Ho Chi Minh Stock Exchange dropped 0.09 per cent to close at 962.07 points.
Liquidity remained low with nearly 136.4 million shares traded on the bourse, worth VND3.2 trillion (US$136 million).
On the southern exchange, 140 stocks advanced while 157 declined.
The benchmark index rose 0.48 per cent to close Monday at 962.90 points.
Foreign investors continued to be net buyers on HOSE while liquidity decreased compared to the previous session, showing the cautiousness of investors due to the lack of new supporting information.
Foreign investors today bought a net VND262.81 billion on HOSE, focusing on Vincom Retail (VRE) (VND123.8 billion) and Bao Viet Holdings (BVH) (VND20.3 billion). In addition, they bought a net VND4.75 billion on HNX.
On the Ha Noi Stock Exchange, the HNX-Index decreased by 0.04 per cent to end at 103.95 points.
Some 24 million shares were traded on the northern market, worth VND255 billion.
The northern market index dropped 0.20 per cent to end Monday at 103.99 points.
At the end of the trading session, the market faced selling pressure and this caused many pillar stocks to drop, such as Vinamilk (VNM), Vingroup (VIC), Vinhomes (VHM), FLC Faros Construction Joint Stock Company (ROS), Sabeco (SAB) and Kido Group (KDC). SAB decreased by 2.1 per cent to VND276,000 per share. ROS lost by 1.1 per cent to VND30,650 per share. VNM dropped 1.1 per cent to VND125,500 per share.
On the other side, some large-caps stocks maintained the rally, cushioning the indices, such as Vietcombank (VCB), Tien Phong Bank (TPB), Mobile World Group (MWG), Military Bank (MBB), PetroVietnam Gas JSC (GAS), Bank for Investment and Development (BID) and Bao Viet Holdings (BVH).
The large-cap VN30-Index was down 0.18 per cent to end at 870.91 points with 12 of the 30 largest stocks by market value and trading liquidity progressing.
According to Bao Viet Securities Company, the market is expected to face pressure from the resistance zone of 965-968 points over several sessions. The market may experience volatility and corrections with alternative ups and downs in coming sessions. The index’s next support zone is expected to be 955-958 points.
If successfully passing 965-968 zone, the market can expand its recovery, heading toward a stronger resistance zone of 977-983 in the short term. This zone will challenge the market’s rise.
Cash flows are rotating among stock groups with macro-economic benefits, including textiles, industrial zone real estate, and information technology. Bank stocks might possibly move sideways in several sessions. Oil and gas stocks are expected to rebound after the last two sessions.
Investors can consider raising stock exposure to 30-40 per cent of the portfolio. Investors can buy stocks during market corrections, with priority given to existing positions.
