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Stock hot spot on 21-27 May: Cash flow continued to weaken, VN-Index lost important support levels in turn

Stock hot spot on 21-27 May: Cash flow continued to weaken, VN-Index lost important support levels in turn

[Điểm nóng chứng khoán tuần 21-27/5] Dòng tiền tiếp tục suy yếu, VN-Index lần lượt đánh mất các mốc hỗ trợ quan trọng

The correcting trend tended to return, while the cash flow started to be cautious, making VN-Index continuously in red.
1. Vietnamese stocks were in red

After increasing continuously to nearly 990 points on May 20, Vietnam stock market is tending to return to adjust when the red color became the main color.

With 4/5 declining trading sessions, the last week continued to mark a negative trading week of the stock market. At the end of the week, VN-Index closed at 959.88 points, down more than 10 points compared to the beginning of the week. HNX-Index and UPCOM-Index are not out of this trend when closing the trading week in the red.

[Điểm nóng chứng khoán tuần 21-27/5] Dòng tiền tiếp tục suy yếu, VN-Index lần lượt đánh mất các mốc hỗ trợ quan trọng - Ảnh 1.

The market opened at the beginning of the week in green, after many previous drops. However, this movement is not due to the confirmed recovery trend but merely a technical recovery session. Four consecutive sessions after that, the red returned, making VN-Index lost its important support levels at 970 and 960 points respectively.

The pressure of profit taking increased in many stocks leading the previous cash flow, such as oil and gas, consumption and real estate, while the demand at the bottom was cautious, making the market fall into a market with few sellers. buyer. The liquidity of the trading sessions on HoSE was only over 3,000 billion dong, maintained at low level because the bottom catching cash flow had a big differentiation, not accepting chasing to push prices.

Key oil stocks such as GAS, PVD, PVS after previous strong rally thanks to the recovery of oil prices have returned to the red when the world oil price reversed. Particularly in Friday’s trading session, this group of stocks became the focus when almost all “P” stocks declined by 3-5%. Large stocks do not have many imprints when leading roles and pillars are rotated.

While domestic investors were cautious with market movements, disbursed drastically, foreign investors accelerated with net buying status in some stocks.

Foreign investors saw a net selling of over 250 billion dong on HoSE but in terms of volume, they net bought 7.2 million units.

In fact, this movement was mainly due to the mutually agreed put-through transaction in the last session of VJC with over 5.2 million units. Excluding large-scale put-through sessions, foreign investors still net bought on the matching market with a value of nearly VND300 billion.

2. World stocks plunged

The US stock market fell sharply, marking the worst month since the beginning of 2019 due to high trade tension. The Dow Jones Industrial Average closed at 24,815 points (down 3.01%), the Nasdaq Composite index closed at 7,453 points (down 2.41%), and the S&P 500 index closed at 2,752 points (down 2, 62%). The S&P 500 has returned below the 200-day moving average, which is considered an important threshold for some technical analysts. Volatility, measured by the Cboe Volatility Index (VIX), skyrocketed on Friday.

All industry groups recorded losses. Energy stocks performed worst in the second week in a row as oil prices fell to their lowest level since February. While the trade conflict with China is getting deeper as the tone of both sides intensifies, suddenly on Thursday night, President Trump announced via twitter that the US will impose a 5% tax on with Mexican goods unless the Mexican government prevents the influx of illegal migrants across the border. He then added that tariffs will gradually increase to 25% if the crisis continues.

European stock markets plunged as investors sought risky refugees amid concerns about rising global trade tensions. The FTSE 100 index of the UK closed at 7,161 points (down 1.59%), Germany’s DAX 30 index closed at 11,726 points (down 1.59%), and France’s CAC 40 index closed at 5,207 points. (decreased by 2.05%). In Italy, the political situation became tense because of disagreements between the government and the European Union (EU), which caused the stock market to fall nearly 3%. In the last election of the European Parliament, the center-left and centre-right parties dominated the EU for decades, losing for the first time a majority in Parliament. The ultra-populist parties and the pro-liberal parties in the EU have all gained a foothold, which could make it more difficult for the European Parliament to reach consensus on regional issues.

The Japanese stock market ended the week lower. The Nikkei 225 index closed at 20,601 points (down 2.44%). The yen became stronger than the US dollar, closing at 108.91 yen / US dollar. Stocks have fallen to low levels for months due to worries about a prolonged global trade war, which could damage Japan’s already weak economy. Stocks have fallen steadily over the past four weeks since the market ended the holiday season. Many observers believe that the weakness of the stock market, poor exports and slowing consumer spending are likely to make the Japanese government curb the increase in consumption tax expected to be made. in October here. However, the better-than-expected first-quarter gross domestic product growth figure is a lifeline for those proposing to raise taxes.

Despite the end of the trading week, the Chinese stock market rose but still marked the biggest monthly decline since October last year. At the end of the week, the Shanghai Composite Index closed at 2,898 points (up 1.61%) and the Hang Seng Index closed at 26,901 points (down 1.65%). Foreign investors sold a total of 53.7 billion yuan (7.78 billion US dollars) on the Chinese stock market in May, nearly three times higher than April and net sales. The biggest since December 2016. Analysts say the latest escalation in the trade war signalled no good for the economic prospects of not only the US and China, but also the world.

Vietnam Stock Market Advisory Service