The VN-Index is under downward pressure

For investors who are still holding stocks, it is necessary to sell immediately while the positions are still profitable or use trailing stop loss orders at breakeven points.

Vn-Index closed at 1,227.04 points on June 13, after losing -53.91 points (-4.20%). Similarly, the Hnx-Index lost -18.08 points (-5.90%), closing at 288.37 points. The total trading value was VND 18,523.28 billion on HSX and VND 2,738.10 billion on HNX. Foreign investors sold a net of VND -185.79 billion on HSX, but bought a net of VND 4.99 billion on HNX.

MSN, VHM, and VPB were the top losers on the HSX today, taking away -2.87, -2.53, and -2.41 points from the index. On the other hand, EIB, POW, and VSH were the top gainers, contributing respectively 0.15; 0.15; and 0.07 points to the index.

11 out of 11 sectors performed worse in today’s session. Energy (-6.67%) was the biggest loser, due to the declines amongst PLX (-6.67%), PVD (-6.80%) and PSH (-7.00%). This was followed by Telecommunications (-6.34%), impacted by MWG (-6.67%) and FPT (-5.96%). Utilities (- 1.10%) were the least impacted sector, mainly thanks to the support from POW (1.67%).

On the morning of June 15, the VN-Index fell to 1,208 points, a drop of more than 10 points from the previous session.

On the morning of June 15, the VN-Index fell to 1,208 points

Mr. Tran Xuan Bach, BVSC’s analyst, said the strong drop in the US stock market before the Fed's monetary policy meeting, along with domestic events such as the futures contract expiration in June and the restructuring period of foreign ETFs, will likely exert immense downward pressure on the Vietnam’s stock market, especially in the early sessions of this week. Therefore, investors should temporarily sit on the sideline to observe the market.

"For investors who are still holding stocks, it is necessary to sell immediately while the positions are still profitable or use trailing stop loss orders at breakeven points. Cutting losses when the loss exceeds 5% should also be taken into consideration", said Mr. Tran Xuan Bach.

On the weekly chart, Vn-Index formed 2 consecutive "spinning top" candlesticks at the resistance zone of 1,315-1,330 points. This implies that, if the index closes below the support zone of 1,260- 1,265 points this week, the market's strong correcting pressure to around 1,200 points or even lower will be substantial.

Regarding the Vn-Index’s technical trend, the index's gain over the past 2 weeks is still considered a technical recovery. The market's recovery was completely dominated by the strong bearish candlestick with a bearish gap on May 9th, and it is likely that this long candlestick will continue to cover the market's downward pressure this week. Thus, the strong support area of the Vn-Index will be at 1180-1210 points.

On the daily chart, the Vn-Index ended a short rally from the bottom of 1,156.54 points, after penetrating the support zone of 1,250-1,260 points. The index's support zone is located at 1,200 points.

"Although the index's movement is showing negative developments, at present, we have not seen any sign that the market will violate the bottom or retreat below 1,156 points", Mr. Tran Xuan Bach forecasted.