VN-Index re-tested the 1,200 point mark, foreign investors’ discharge skyrocketed

The upward momentum stalled this morning when the cash flow refused to buy any higher and withdrew to wait for new selling pressure. The very narrow width reflects a different picture compared to the index, when VN-Index just lost 1.67 points (-0.14%) but hundreds of stocks are falling more than 1%. HoSE liquidity fell to the lowest level in the last 5 sessions and decreased by 21% compared to yesterday morning. Meanwhile, foreign investors had a net discharge of more than 400 billion VND.

Yesterday’s explosive rally created significant excitement and liquidity also increased the best since the beginning of the week. However, after one night, investor psychology calmed down, the buy orders to chase the price were no longer causing the VN-Index to be in the red almost the entire time. In fact, this index still has a few supporting pillars so it decreased relatively little, while stocks fell much deeper.

The deepest bottom VN-Index reached was 1,200.9 points. The pullback in the first few minutes brought the index to retest the psychological level of 1,200 points, before there was a bridge to catch the trickling bottom. Closing the morning session, VN-Index only climbed to 1,203.94 points, down 1.67 points compared to the reference.

This decrease does not accurately reflect transactions on HoSE this morning. The breadth was very narrow with 128 codes increasing/304 codes decreasing, of which 140 codes decreased more than 1%. Liquidity in this weakest group accounts for about 43% of the total transactions of the exchange, in terms of quantity, it accounts for more than 39% of codes with transactions.

However, the overall liquidity is not high, showing that the deep discount margin is mainly due to buyers withdrawing. Indeed, of the 140 codes down over 1%, only 5 codes with liquidity exceeding 100 billion VND are DIG down 1.75%, SSI down 1.12%, VIX down 1.74%, TCB down 1.17% and MBB decreased by 1.11%. Even stocks with a tradition of high liquidity such as HPG, NVL, PDR… although their prices have dropped a lot, their trading is quite slow.

Normally, after an unexpectedly strong increase, cash flow will wait for the price to retreat so that it can buy more reasonably. Therefore, the price turning down is a normal phenomenon and in that context, high or low liquidity will mainly be decided by the seller. If the seller sells a lot of goods, the liquidity will certainly be high and the price will decrease further due to reaching the waiting demand below. On the contrary, if the seller also chooses the price and sells little, supply and demand will not easily meet, leading to small liquidity.

Although the red color spread this morning, the market was mainly in a state of struggle. The reason is that with the very strong increase in amplitude yesterday, the short-term bottom-fishing stocks were quite profitable. Speculators who want to surf will easily take profits. This afternoon, the amount of cheap goods in the second bottom testing session on April 23 arrived in the account and that was an opportunity to observe the pressure from the stockholders.

The price increase this morning did not have many strong codes, although there were still 128 green stocks. Only 45 stocks increased more than 1% with very few attracting cash flow. The most significant transaction was MWG’s increase of 1.73% in liquidity to 559.3 billion VND; FPT increased by 3% with 440.3 billion; MSN increased 1.79% with 259.5 billion; VTP increased by 2.57% to 90.4 billion. These stocks are also under certain selling pressure and prices cannot maintain their highest levels. Even though FPT surpassed its historical peak, it was also knocked down 3.36% compared to the peak at the beginning of the day, VTP dropped 2.7%.

Foreign investors suddenly increased their selling volume, specifically, the total value of shares sold on HoSE reached 1,385.8 billion VND, an increase of 2.2 times yesterday morning and the highest in 8 sessions. The buying side was quite weak with 984.8 billion VND, equivalent to a net selling of 401 billion VND. However, there were not many stocks that were sold suddenly, but this large net selling level was mainly on a very large scale. The codes that were strongly dumped were MSN -44.6 billion, DIG -35.9 billion, DGC -20.3 billion, CTG -20 billion. The buying side has MWG +32.7 billion, TPB +21.9 billion, VND +21.1 billion.

The slowing down of the increase this morning is a predictable development because in most of the next sessions, a day of sudden increases/decreases, the market also temporarily “takes a breather”. At this time, short-term speculators have an advantage, so weakening liquidity is a good signal, showing that this group is tending to hold back goods.