The VN-Index could continue to be under downward pressure

Investors appeared to find yesterday’s recovery unconvincing. 

>> VN-Index may continue to retreat

Investors appeared to find yesterday’s recovery unconvincing. The main index opened with just a glimpse of a green hue before sinking into the red. Trading activities were much more active in the afternoon compared to a quiet morning as sour sentiment caused investors to flush out bottom-fishing stocks that had rebounded yesterday, pushing the VN-Index to close at its intraday low of 1,113.9. The two-headed monster—a strong USD and Chinese real estate woes—continues to weigh on the market as the brokerage and residential property sectors led today's decline. VIX (-6.3%), VND (-3.9%), VCI (-5.0%), and HCM (-2.4%) led the brokerage sector lower.

Real Estate’s big losers yesterday included DXG (-7.0%), DIG (-7.0%), and NVL (-5.5%) following the news that NVL had yet again failed to make a bond payment of VND157bn (USD6.4m) of bonds that matured on September 30. Industrial property was the best-performing sector, continuing to reflect the Prime Minister's decision to reduce 2023 payable land rents by 30%. The sector was led by VGC (5.9%), which at one point rose to its ceiling price after announcing yesterday that they had exceeded the 31% full-year earnings target.

Despite yesterday’s announcement of fairly strong credit growth, blue-chip banks VCB (-2.1%), BID (-2.1%), and CTG (-2.8%) were major laggards as rumors spread that Q3 earnings would come in below expectations. Besides the banks, VNM (-2.3%) also dragged on the VN-INDEX. On the other hand, VGC (5.9%), GVR (1.5%), and HAG (4.9%) were the large caps that lent support to the VN-Index today.

>> Hopes are high for many sectors, spurring VN-Index

All sectors lost ground today, led by energy (-3.3%), consumer discretionary (-2.0%), and financials (-1.6%). Top index movers included VGC (5.9%), GVR (1.5%), HAG (4.9%), PVD (1.6%), and PGD (4.5%). Top index laggards consisted of VCB (-2.1%), BID (-2.1%), CTG (-2.8%), VNM (-2.3%), and MWG (-4.5%). The top three major put-through transactions were VIC with 6.6 million shares (VND311.3 billion), VHM with 6 million shares (VND270 billion), and EIB with 10 million shares (VND169.8 billion).

VN-Index is in downward trend

Foreigner's net sold on HOSE to the amount of VND700.4bn, and also net sold on HNX to the amount of VND17.8bn. They mainly bought REE (VND38.2bn), VCB (VND29.3bn), and FUEVFVND (VND26.9bn), and mainly sold MWG (VND65.2bn), VNM (VND59.5bn), and FUEVFVND (VND44.4bn).

The market rebounded after testing the support zone around the MA200 line, corresponding to 1,105–1,115 points. However, BVSC still pays attention to the possible negative scenario that, in the short term, Vn-Index will continue to be under strong downward pressure to test the 200-day moving average (MA200) before stabilizing and recovering.

“Investors who have sold should continue to observe and not rush to buy right away. Buying and trading activities are suitable if investors have high cash exposure and a high risk appetite. It is advised to consider buying and trading when the Vn-Index tests the 1,135–1,145-point zone. Prioritize existing stocks or choose stock groups with positive Q3 outlooks”, said BVSC.