Vietnam’s stock market witnessed the second consecutive week of declines.
Although there was a good gaining session at the beginning of the week, the VN-Index turned down the next session with a decrease of 2.2%. The market continued to retreat further in the last 2 sessions of the week and VN-Index closed the trading week at 1,055.3 points, down 2% compared to the end of last week.
Similarly, the HNX-Index fell 3.2% to 208.5 points, while the Upcom-Index gained 2.4% to 77.3 points.
Market liquidity dropped sharply with the average trading value of 3 exchanges down 27.6% to VND 11,050 billion/session.
Although foreign investors continued to be net buyers during the week on HOSE, their net buying value decreased to only 858 billion dong (48.9% decrease compared to last week). Similarly, the net buying value of foreign investors was only 48 billion dong (down 63.3%) on HNX-Index and net selling was 29 billion dong (compared to a net buying of 48 billion dong) on UPCOM-Index.
Red color covered the market when 16/21 industry groups were under pressure to correct. A series of large-cap groups such as retail (-7.64%), securities (-3.68%), real estate (-4.47%) and banking (-1.35%) followed. continued to bear the selling pressure of profit taking from investors. A little green color from small-cap stocks such as seafood (+1.57%), oil and gas (+1.3%), pharmaceuticals (+0.82%)… was not enough to make up for it. for losses of the VN-Index.
Banking stocks witnessed a strong divergence when Vietcombank (VCB) was the stock that kept the index’s beat thanks to positive business results (net profit in the fourth quarter of 22nd quarter increased by 54% over the same period), while VPB (-4.1%), MBB (-1.6%) and VIB (-9.7%) were the stocks causing the biggest drop for VN-Index.
The real estate industry had a strong week of decline, including big names like Vinhomes (VHM) of billionaire Pham Nhat Vuong down 5.6%, Novaland (NVL) of Mr. Bui Thanh Nhon down 8%, Dat Xanh DXG) by Mr. Luong Tri Thin (-13.4%).
The highlight of the week might be the seafood industry with fish prices increasing on the basis of the expectation that demand will recover when the Chinese economy reopens, typically ANV (+16.3%) and IDI (+6.4%).
There may be a technical retracement
According to Mr. Dinh Quang Hinh, Head of Macro and Market Strategy Department of VNDirect, the stock market may have a technical recovery following VN-Index tests the strong support area around 1,040 points.
Cash flow of individual investors is still waiting for a more attractive valuation area to disburse following the business results in the fourth quarter of 2022 are much worse than the market’s expectations.
Since the peak set at the end of January, the VN-Index has fallen by regarding 5.6%, many large stocks have corrected over 10% and even 20%. In the next week, bottom-fishing demand may appear at 1,040 points, helping VN-Index to have a technical recovery span.
However, in the context of weak cash flow, it is hard to expect this recovery to go far. The positive scenario is that VN-Index will continue to accumulate around 1,040-1,080 points.
According to CSI Securities, VN-Index fell for the second week in a row, but last week’s liquidity dropped significantly compared to last week’s average, showing that investors’ sentiment is quite cautious. In the short term, the sideway band (1,060 – 1,070 points) has been broken, so it is likely that VN-Index will head to the support level of 1,037 points in the new week.
According to VCBS, from a technical point of view, VN-Index ended the week with a bearish candle dropping to 1050-1060 points. This is also a point area that has accumulated a series of previous sessions and is also a cross with the MA200, so it can be considered as the nearest support point of the market.
