A customer buys gasoline at a PetroVietnam Oil (PVOIL)'s station. The company stock lost 17.8 per cent in market capitalisation last week. — VNS/VNA photo
HÀ NỘI — After continuously hitting historical peaks, the stock market started to correct itself last week. Even though demand rose quickly after the VN-Index fell to 1,340 point-level, selling forces still dominated leaving analysts from securities firms expecting the market to slide to lower levels this week.
On the Hồ Chí Minh Stock Exchange (HoSE), the benchmark VN-Index closed last Friday at 1,347.14 points. For the week, the index lost more than 4.5 per cent.
The HNX-Index on the Hà Nội Stock Exchange (HNX) edged down in the last trading session to 306.73 points. The index dropped 6.4 per cent last week.
Market liquidity on the two exchanges increased compared to two weeks ago, with an average of VNĐ28.9 trillion (US$1.3 billion) trading per session.
Trading value on HOSE jumped 8.5 per cent to VNĐ127.2 trillion, while that on HNX gained 8.4 per cent to nearly VNĐ17.4 trillion.
BOS Securities Corporation (BOS) said the fall in the last session caused most technical indicators to give signals of a formation of a correction trend in the short term.
The scenario of a deeper plunge to the range of 1,310 - 1,320 points may occur before the market finds a new balance point, which should be noticed by investors in the coming sessions. BOS recommends investors continue to prioritise risk management and keep the stock proportion in portfolios at a balance or low level.
Meanwhile, after investigating supply and demand, Viet Dragon Securities Corporation (VDS) said the benchmark was still negatively affected by the recent fall. The index tested 1,335 point-level again and the liquidity increased back to the 50-day average, showing a strong struggle at this support zone.
However, in general, the selling pressure slightly overweighted the cash inflow into the market, so there are still risks of a downward trend after breaking above 1,335 points.
VDSC recommends investors be cautious until there are enough support signals. At the same time, investors should continue to restructure their portfolios to minimise the risks.
Based on Elliott's theory, analysts from Saigon - Hanoi Securities SJC (SHS) expect that the fifth wave has ended and entered the correction period with the target of around 1,210 points. Therefore, the market is likely to continue to correct to lower ranges to seek demands at low prices.
According to SHS, the next support level of the market is around 1,330 points and the psychological level of 1,300 points can be tested this week.
SHS recommends that investors who have taken profits in the previous weeks can try to take long positions if the market corrects to around 1,300 points.
Investors who have reduced their stock proportions in portfolios during the last rallies can hold their stock portfolio at a low level and wait for deeper corrections to buy-in.
Last week, most sectors inched down, excepted for the retail sector which was up 2.6 per cent in market capitalisation. Of which, Mobile World Investment Corporation (MWG) rose 12.6 per cent, Digiworld Corporation (DGW) up 9.9 per cent and FPT Digital Retail JSC (FRT) up 5.8 per cent.
Oil and gas stocks posted the biggest loss, down 10.5 per cent in market capitalisation. It was followed by material stocks and bank stocks, down 10 per cent and 7.1 per cent, respectively.
On the flip side, foreign investors continued to net buy last week, which was a positive signal in the market, buying a total value of more than VNĐ2.5 trillion. — VNS