Vietnam Daily Market Recap Jul 04, 2022

Market commentary: The VN-Index fluctuated erratically within a tight range against a backdrop of low liquidity

Investors’ euphoria from last week’s extraordinary V-shaped recovery session waned as the trading day wore on, and the market closed down 3.4pts, at 1,995.5pts. European stock markets started the week on an upbeat note as traders queried central banks’ resolve to keep raising interest rates amid mounting evidence of a global economic slowdown, and the VN-Index opened positively with a bullish gap of 7.6pts. The non-bank stocks in the VN30 basket, including Oil & Gas, Retail, and Vingroup related stocks, exerted considerable selling pressure on the VN-Index as it hit a session high of 1,208.9pts. However, the index had slowly and softly moved back to the reference level, thanks to the support from Banking and Security stocks when the morning session was about to end. After losing some of its impetus during the morning session, the VN-Index saw a less favorable afternoon session during which it hovered around a crucial psychological support level of 1,200,0pts. The index was weighed down by heavy selling of stocks in sectors that have lately shown a negative correlation with the market, such as the Energy, Aquaculture, Chemical and Seaports industry. Before the start of the ATC session, the market fought and closed below the 1,200.0 level. Investors’ concerns about liquidity had not abated (down 20% from the previous 20 session average) and strong segmentation of cash flow led investors to concentrate on a select group of equities within the Banking and Security and a smaller number of Manufacturing stocks. GAS (-1.3%), MSN (-0.9%), DGC (-5.2%), MWG (-3.6%), HPG (-1.8%), and VHM (-0.6%) took away 2.5pts, while VNM (+1.9%), VIB (+6.8%), MBB (+1.6%), TCB (+1.0%), VND (+3.2%), and HCM (+6.9%) contributed 2.4pts to the Index. At the end of the session, the VN-INDEX declined slightly by 0.3% to 1,195.5pts, while the HNX-INDEX increased by 0.8% to 281.2pts.

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