After two consecutive weeks of the VN-Index trading below the 1,900-point mark, investor sentiment has grown more pessimistic and cautious. This was evident as buying pressure continued to weaken, while sellers gradually gained the upper hand. The benchmark index for the Ho Chi Minh City Stock Exchange therefore traded below its reference level for most of the session, before closing at 1,845 points, a decrease of 19 points. This marks the fifth consecutive correction session, with the VN-Index falling to its lowest point in one and a half months.

This volatility aligned with predictions from several securities firms. Most suggested the VN-Index was likely to decline sharply this week due to net selling pressure from foreign investors and weakness in blue-chip stock groups. The index is expected to regain balance and reverse its upward trend after touching the 1,800-point support level, further supported by the emerging half-year business results.

Capital inflow into the stock market on the first trading day of the week reached 15 trillion VND, a decrease of nearly 5 trillion VND compared to last week's close, marking the lowest level since the beginning of the year. No stock on the Ho Chi Minh City Stock Exchange recorded a trading value of one trillion VND. VHM led with 710 billion VND, followed by VIX, SHB, FPT, and VIC, which traded between 400-650 billion VND.

Foreign investors continued to trade cautiously, disbursing only one trillion VND while selling approximately 1.7 trillion VND. This group extended its selling streak to 12 consecutive sessions.

Today, the Ho Chi Minh City Stock Exchange saw nearly 160 stocks gain, outnumbering those that declined. However, the index closed in the red due to the impact of Vingroup-related stocks. VIC dropped 3%, falling below the 205,000 VND mark, causing the index to lose more than 10 points. VHM, VRE, and VPL were also among the stocks with the most negative impact on the index.

Conversely, MWG served as a market pillar, rising nearly 4% to 79,000 VND. FPT, GEE, VCB, and VND followed, ranking among the top contributors to the VN-Index with gains ranging from 0.5-4%.

By sector, real estate showed the most positive performance, with most component stocks increasing by 1-2%. Conversely, the oil and gas group faced strong selling pressure, leading to a 1-3% decline. The two key stocks in the oil and gas sector, PLX and GAS, both fell by over 3%.

According to several analyst groups, while the market is currently trending downwards, this is a healthy correction phase before resuming its upward momentum in the near future. Investors are advised to hold stocks with strong fundamentals and consider new purchases in leading banking, securities, and oil and gas sector stocks during market fluctuations for a medium-to-long-term investment strategy.

"Caution and patience are the key words for this month", the MBS analysis group recommended in its new market strategy report released this morning.

Phuong Dong