Periodic Reports | Market Trends: Struggling with reality

Market Trends: Struggling with reality

08/09/2021

Summary

Vietnam stock market witnessed a bear market on Wednesday trading session as it continued to drop due to correction of banking stocks

At the end, VN Index lost 8.29 points, or -0.62% and closed at 1,333.61 points. Liquidity plunged as the trading value was just VND19,579 bn, equivalent to 626mn shares traded. Meanwhile, foreign investors had the 8th net selling session in a row with a net value of VND 511 bn

The Vingroup duo including VIC (-1.04%), VHM (-1.55%) were the stocks that made the VN Index drop, followed by VPB (-2.36%). On the other hand, the gain of steel giant, HPG (+1.18%), along with SSI (+6.88%) and BCM (+1.46%) helped the index restrain the drop.

Near the end of the 3rd quarter, investors are becoming very cautious with their decisions, because the decline in quarter earnings is inevitable under the impact of social distancing. However, inflation is still under control, so the room for monetary and fiscal policy is still quite large. In addition, the possibility of partial easing of lock down can be expected starting from the fourth quarter. These may be the current catalysts for the market.

Technically, VN Index tested the MA50 support level and rebounded, showing that investors still have short-term positive expectations. If this threshold is held, the situation will be more positive. In addition, MACD still maintains buy signal. However, the RSI is facing challenges at the short-term downtrend line. We believe that the market may be in the accumulation phase to wait for clearer signals from the fundamental side of the economy and the market.

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