Market grappling with pessimistic sentiment among investors.
Positive signs in Asian stock markets weren’t reflected in Vietnam on the first day of the new week, with the VN-Index losing 9 points at one stage in the morning session.
Trade was relatively quiet. Bottom buying was quite weak and only seen at very low prices, while sellers only accepted selling in the high price range, resulting in low liquidity.
At 10am the VN-Index had fallen 3.19 points (0.35 per cent) to 897.63 points, while both the HNX-Index and UPCoM-Index rose. The matching order value was a low VND550 billion ($23.6 million), with investors remaining cautious.
Oil and gas stocks were active, with PVS, PVD, PVB, PET and PGS rising. Banking stocks such as ACB, CTG, BID, MBB, SHB, HDB and TCB also gained, helping the market become more active compared to early on.
At the end of morning session the VN-Index was down 7.62 points (0.85 per cent) to 893.2 points, the HNX-Index 0.03 points (0.03 per cent) to 101.76 points, and the UPCoM-Index 0.04 points (0.07 per cent) to 51.09 points. Total matching value was only VND1.4 trillion ($60.1 million).
Many stocks still managed to gain ground, such as BVH, FPT, GMD, HAG, VHC, VRE, PVS, and PVD.
Foreigners net sold overall by VND20 billion ($858,835) – VND35 billion in net selling on HSX and VND15 billion in net buying on HNX and UPCoM.
Bluechips such as VRE, VJC, MWG, PNJ, FPT and GMD rose, with BVH, GAS, HPG, MSN, HSG, VHM and PLX doing particularly well.
Given the existing market trends, Bao Viet Securities (BVSC) said that investor sentiment is quite pessimistic and there has been some level of panic in the short term. The market may need to fall further to create a more balanced supply and demand.
The VN-Index is supported by the SMA100 area of 884-885 points. The mid-term trend in the market is turning negative, so BVSC believes it may soon penetrate the support range in the near future.
In the short term, the Index is falling significantly as the Bollinger Band continues to go down. This may cause the market to break its old bottom of around 885 and retreat to the next support level of 860-870 points.
My Van report on Vneconomictimes
