Strong selling pressure returns to Vietnam stock market

Strong selling pressure in the week-ending session knocked the wind out of the Vietnamese stock market's sails as it fell to around 1,100 points.

The VN-Index, which represents the Ho Chi Minh Stock Exchange (HoSE), maintained its recovery from November 13 to 16 with green covering most groups, surpassing the 1,130-point area at one point. Market liquidity also improved significantly and exceeded the 20-session average.

However, the fall in the week-ending session erased almost all the progress made in the previous days. Strong net selling among foreign investors also negatively impacted the market.

Closing the trading week, the VN-Index decreased slightly by 0.49 points, or 0.04%, to 1,101.19. Trading value on the HoSE reached over VND91.6 trillion ($3.77 billion), up 4.3% from the previous week. Trading volume increased 2.4%, averaging more than 824 million shares per session.

The HNX-Index on the Hanoi Stock Exchange (HNX) dropped 0.11 points, or 0.05%, to 226.54, with a trading value of more than VND11.33 trillion ($466.93 million), an increase of more than 10% compared to the previous week.

VCB of Vietcombank, VIC of private conglomerate Vingroup, and VHM of real estate giant Vinhomes had the most negative impacts on the VN-Index. In particular, VCB alone stripped over 3.2 points from the index.

On the contrary, PDR of Phat Dat Real Estate Development Corp., ITA of Tan Tao Investment and Industry Corporation, and PNJ of Phu Nhuan Jewelry were the most positive influencers.

Foreign investors were net sellers for the second consecutive week to the tune of up to VND1.34 trillion ($55.22 million). They mainly net sold VIC, MWG of Mobile World Investment Corp., and FUESSVFL fund certificates.

Leading broker Saigon-Hanoi Securities (SHS) believed that the market will need time to find a balance area for its accumulation process.

"The VN-Index is retesting the support zone of 1,100 points and if successful, the recovery momentum can be extended. At that time, short-term investors can put down money but with caution.

"In the medium and long term, investors can consider buying stocks in correction sessions. They should choose leading tickers with good fundamentals and stable growth potential that are moving in the current accumulation state," it advised.

Another broker Vietcombank Securities (VCBS) recommended investors maintain an appropriate stock proportion at 30-40%, and keep a close watch on market developments around the support zone of 1,080-1,090 points and further 1,040 points to take advantage of strong corrections to buy shares for their surfing strategies, it said.