This picture taken on May 28, 2012 shows Vietnamese workers walking past the Stock Exchange building in Ho Chi Minh City. AFP PHOTO/Francois MAY
HANOI: The stock market experienced strong fluctuations during the transitional trading week between July and August – July 29 to Aug 2.
The last three sessions of July saw a recovery to around 1,255 points, but there was a sudden sell-off in the first trading session of August 2024.
By the end of the week, the VN-Index continued to adjust to the range of 1,200 to 1,211 points, a strong psychological support level, which is also the highest price level of 2018, as well as the one-year and five-year average price, before recovering.
On the Ho Chi Minh Stock Exchange, the VN-Index closed the week at 1,236.6 points, while the HNX-Index on the Hanoi Stock Exchange (HNX) ended at 231.56 points.
Both indices recorded weekly declines, with the former falling by 0.44% and the latter by 2.15%.
The average daily transaction value across the market was 16.1 trillion dong per session, a slight drop of 0.1% compared to the 16.12 trillion recorded the previous week.
After strong net selling amounting to 60 trillion dong since the beginning of the year, foreign investors reversed to net buying in the first two sessions of August. Foreign investors returned to net buying amidst a “turbulent” trading week.
Commenting on the return of foreign net buying in two consecutive sessions last week, Vietnam Construction Securities Joint Stock Company (CSI) noted that this was a positive signal, possibly indicating a new cycle of foreign net buying after a period of strong net selling.
Last week, steel stocks performed poorly with news of the European Union’s anti-dumping investigation.
Specifically, Hoa Phat Group fell by 0.73%, Nam Kim Steel dropped by 6.64% and Hoa Sen Group by 7.34%.
According to the Trade Remedies Authority under the Industry and Trade Ministry, on July 30, the authority received information that the European Commission had received a valid request to investigate the application of anti-dumping measures on imports of non-alloy or alloy hot-rolled steel coil products from Vietnam.
Experts from Saigon, Hanoi Securities Joint Stock Company, said that the short-term trend of the VN-Index remains negative after a failed recovery attempt at the resistance zone around 1,255 points, corresponding to the highest price level of the year, and the short to medium-term trendline connecting the lowest prices of November 2023, April 2024 and July 2024, leading to strong selling pressure.
The strong resistance level of the VN-Index is at 1,255 points, with support at the lowest price of 1,218.7 on July 24, 2024.
In the last two trading sessions, the VN-Index adjusted to 1,209 points and rebounded above the lowest price on July 24, 2024, with many stocks experiencing sudden strong selling pressure and good recovery, especially those with good fundamentals and strong second quarter business results.
This indicates a short-term shakeout of speculative and highly leveraged positions, and opens up many accumulation opportunities for quality stocks.
Experts from CSI Securities said that selling pressure still dominates, so the company continues to maintain a cautious view.
Investors should temporarily refrain from opening new “buy” positions or increasing the proportion of stocks in their portfolios.
Instead, they should patiently wait for clearer positive signals.
In a downward trend, CSI expects the 1,195-point level to remain an important support level for the VN-Index next week.
This month, analysts from Nhat Viet Securities forecast two scenarios for the VN-Index.
In the first scenario, with weakening pressure and active low-price demand in the 1,200 to 1,230 point range, the VN-Index may continue to fluctuate sideways within the 1,200 to 1,300 point range. — Viet Nam News/ANN
