Index then steadies but still in negative territory.
Caution abounded in Vietnam’s stock market on the first day of the new week, with the VN-Index shedding more than ten points in the opening minutes. The sharp declines, however, attracted bottom-fishers, with stockholders unwilling to sell also steadying the market.
At 10.10am, the VN-Index was down 6.38 points (0.7 per cent) to 907.91 points, the HNX-Index 0.36 points (0.35 per cent) to 102.65 points, and the UPCoM-Index 0.49 per cent to 51.34 points. Liquidity was quite low, with a matching order value of VND900 billion ($38.6 million).
Sectors such as securities, banking, and real estate and construction lost ground. In seafood, CMX continued to be a “hot” stock, hitting its ceiling, while VHC remained at its reference level.
Bluechips such as VHM, VRE, VIC, BVH, HPG, MSN and VCB all fell, negatively impacting the market.
Oil and gas fared slightly better, with PVS, PVD and PVC doing well. News that Russia and OPEC had cut output to limit falls in oil prices had a positive impact.
The Saigon – Hanoi Securities JSC forecast that the situation this week will be difficult as the trendline lifted to 940-950 points, making sales more difficult.
Liquidity continued to fall, indicating that cash flows have not returned to the market as the risk is still considered high. The VN-Index may continue to fluctuate and may need another test to support 885-900 points again. It maintains its recommendation for investors with high stock exposure to keep their resistance at 940-950 points.
Investors who have a high cash proportion should not rush to disburse at this time when the market is still likely to fall further after trendline growth.
My Van report on Vneconomictimes
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