Cash flow dries up on Vietnam stock market

Trading value on Vietnam’s main bourse shrank by 32% last week compared to the previous week, while trading volume plunged 34.2%.

The Ho Chi Minh Stock Exchange’s (HoSE) transaction value totaled VND43.63 trillion ($1.86 billion) from April 17-21.

The VN-Index, which represents the HoSE, fell 0.95% to 1,043 points. Foreign investors were net sellers for the fourth consecutive week with a value of more than VND138 billion ($5.87 million), lower than the previous week.

VPB of VPBank, GAS of PV Gas, and VCB of Vietcombank had the most negative impacts on the index. On the other side, SAB of leading brewery Sabeco, VHM of property developer Vinhomes, and BMP of Binh Minh Plastics had the most positive influence.

According to securities firm SHS, the index - down a little this week - is still creating a firm accumulation base, and the market is creating recovering waves with the trough likely to be higher but the crest remaining the same.

SHS analysts recommend that mid- and long-term investors continue to disburse and gradually increase their holdings to catch a new uptrend.

From a technical point of view, VCB Securities said that active buyers are looking at individual sectors, showing that the market is still diverging and cash flow is still selective. However, if the selling pressure continues to increase, the VN-Index is likely to return to its previous bottom of around 1,020-1,030 points, although the probability is not high.

VCB Securities recommended investors maintain their accounts at a safe level of approximately 20-30%, and hold on to stocks with strong accumulation performances.

MBS, another securities firm, said that liquidity in the gaining sessions was lower than in the losing sessions during the short-term correction, showing that the downtrend may continue.

Technically, the VN-Index may fluctuate within the support zone of 1,020-1,040 points this week, it added.