VN-Index could further decrease?

However, sellers weren’t as strong as at the end of last week, as the drop got weaker and the liquidity also dropped. The pressure came mainly from blue-chips like BID, GAS, FPT, MWG, and VIB. On the other side, the uptrend was consistent in some groups with unique stories like steel, and seaports. Besides, Viettel and Utility were some rare groups that could stay green. Foreign investors’ selling pressure increased again, focusing mainly on two main groups: FPT and the codes in the Fubon FTSE Vietnam ETF portfolio like HPG, VIC, VNM, VHM, and MSN.

The VN-Index opened the week lower, dropping 0.4%, or 5.14 points, to 1,274.77 points, following Friday’s 1.7% decline. The HNX Index also fell, down 0.3%, or 0.81 points, to close at 243.16. Stocks struggled due to persistent foreign selling as the VND weakened despite some sectoral gains and positive developments in the steel industry.

The Technology (-1.6%) and Financial Services (-0.7%) sectors dragged on the market, led by FPT (-1.6%), CMG (-3.0%), VCI (-3.4%), VND (-1.7%), VDS (-6.2%), and BSI (-3.7%). On the other hand, telecommunications (6.4%), industrial goods & services (2.2%), and basic resources (1.4%) performed well throughout the session.

Galvanized steel stocks HSG (6.9%) and NKG (4.3%) rose sharply thanks to the news that Vietnam is starting to investigate the dumping of galvanized steel imported from China and Korea. In particular, the Ministry of Industry and Trade (MOT) issued Decision No. 1535/QD-BCT dated June 14, 2024 to investigate and apply anti-dumping measures on a number of galvanized steel products originating from China and Korea.

HPG (1.2%) also gained as the Department of Trade Remedies (Investigation Agency) confirmed that the dossier requesting the investigation of the application of anti-dumping measures for hot-rolled steel coil (HRC) products imported from China and India was complete and that it would consider whether to begin an investigation over the next 45 days.

Foreign investors continued to sell many stocks, marking an eighth consecutive session of net selling with a net trading value of VND845bn (USD33mn), with selling focused on HPG (VND148bn, USD5.8mn), FPT (VND111bn, USD4.3mn) and VRE (VND101.8bn, USD4.0mn). On the contrary, HSG (VND107bn, USD4.2mn), SAB (VND89.9bn, USD3.5mn) and TPB (VND45bn, USD1.7mn) were mainly bought.

Index drivers today included HPG (1.2%), HVN (2.6%), GVR (1.0%), SSB (1.8%), and HSG (6.9%), which contributed an aggregate of 1.9 points to the VN-Index. Conversely, the top laggards included BID (-2.1%), GAS (-1.7%), and FPT (-1.6%).

In technical terms, VN-Index dropped further, but with a weaker drop. There was a sign of a dropping candle with a lower range and lower volume, showing weaker selling pressure. It was positive that there was no dumping pressure after the strong drop at the end of the week, suitable to hope that it is only a short-term correction. For HNX-Index, it also dropped. The sign was similar to VN-Index, with a small dropping candle with a lower volume. HNX-Index might drop further to a support level of 238-240 points.

“General strategy is maintaining high weight, if it still saw strong sales, we should consider lowering it to a low average level. If it sees a positive scenario, it is still expected to differentiate further with priority on healthy groups like VN30, sea transport-seaport, aviation, technology, steel, textile, fertilizer, and retail”, said PHS.

BSC said in the coming sessions, VN-Index would further decrease to the 1,250 - 1,260 range. Investors should trade carefully.