Investors should pay due attention to the 1,000-point mark and monitor the market supply and demand in the context that the correcting trend will take the leading position this week, said analysts.
On the Ho Chi Minh Stock Exchange (HoSE), the market benchmark VN-Index dropped 1.34 per cent, to 1,039.56 points.
During last week, the VN-Index had four out of five declining sessions, losing 19.75 points or 1.86 per cent and settling at 1,039.56 points. The index had 133 gainers and 244 losers. Real estate was under great pressure and had a negative spillover effect.
“We maintain our opinion that the downside risk is still present in the short term. VN-Index may continue to retreat to the support zone of 1,000-1,015 points and swing within 1,000-1,100 points after that,” said Tran Xuan Bach, a stock analyst at Bao Viet Securities Co (BVSC).
“Therefore, investors should suspend trading activities and continue to observe the market in the last session of the week,” he said.
“After a quick recovery from the support area of 1,030 points, the market still remained cautious and stepped back to explore the support zone of 1,030-1.045. Although the volume was low, selling pressure dominated the whole session, as shown by the closing price stopping close to the lowest level of the day. With this development, it is likely that the market will continue to probe 1,030 points to find support signals of money flow in the next session,” said Thao Nguyen, a stock analyst at Viet Dragon Securities Co.
“At the same time, the risk of returning to the downtrend afterward is also high. Therefore, investors should pay attention to observe the supply-demand balance, temporarily take advantage of the market’s recovery to take profits or restructure the portfolio in the direction of minimising risks,” she said.
According to Nguyen Anh Hoa, Head of the Securities Analysis Department of Agriseco, selling pressure has increased significantly. In addition, the market has failed to regain the short-term uptrend and the mid-term trend, which shows that the risk of correction this week will increase significantly. The reason may come from the negative news from the real estate and bank sectors, plus the pressure to withdraw capital from foreign investors, including ETFs from Asia, causing the market to lack support from investors and private organisations.
In addition to the domestic causes, the market is also suffering from some international impacts when the below-expected results from the inflation reports have made investors worry.
"Therefore, although 1,030 points is still an important support for VN-Index, it is not sure that the index will not drop below this point". At that time, Khoa recommended that investors should pay attention to the 1,000-point mark and monitor the market supply and demand in the context that the correcting trend will take the leading position this week.
The market corrected in the past week, causing all major industry groups to decline. Real estate stocks fell sharply with Nam Long Group (NLG) down 8.9 per cent, Dat Xanh Group (DXG) losing 7.2 per cent, Khang Dien House (KDH) dropping 6.5 per cent, Vinhomes (VHM) falling 5.3 per cent, Phat Dat Real Estate (PDR) down 3.7 per cent, and Novaland (NVL) down 2.1 per cent. — VNS