Vietnam Daily Market Recap Aug 11, 2022 – KBC

Market commentary: Sharply rising profit-taking pressure was seen in the market

Investors’ enthusiasm was put to the test by heavy profit-taking pressure after the market’s spectacular gain, resulting in a modest decline of 4.4pts for the VN-Index, which closed at 1,252.1pts. Asian shares rallied and European stocks ticked higher after data showed that inflation in the US had steadied, boosting investors’ hopes that the Federal Reserve will soften its approach to tackling rising prices and the VN-Index opened positively with a 10.9pts gap increase. Investors’ optimism after the bullish response of indexes worldwide was swiftly challenged by the dramatic escalation in profit-taking activity as the Index reached the vital resistance level of 1,262-1,270pts. Indeed, the Securities, Real Estate, Industrial Park Real Estate, Material, and Public Investment sectors that had been showing exceptional profitability recently had been under the most pressure. As optimistic news continued to trickle in, the VN-Index stayed in the green thanks to the backing of Oil & Gas, and Energy sector. However, the afternoon saw a further increase in selling pressure, sending the Index further into bearish territory. The bottom-fishing demand helped the market rebound somewhat before the ATC session began after it touched a session low of 1,245.90pts. Notably, profit-taking pressure accelerated significantly, with liquidity suddenly increasing (+34.6% compared to the previous session and +20.6% compared to the previous 5-session average) following a string of 5 straight cumulative sessions below the key resistance level of 1,262-1,270pts, demonstrating that the market’s effort to break through the resistance zone has been unsuccessful and that a further, cumulative correction is required. Supporting stocks today were VCB (+1.2%), GAS (+1.9%), VIC (+1.5%), MSN (+0.9%), VGC (+5.1%), and VRE (+1.8%). Equities such as NVL (-2.3%), VNM (-1.9%), HPG (-1.7%), VPB (-1.7%), MBB (-1.5%), and GVR (-1.4%) all have a positive correlation with the market. At the end of the session, the VN-INDEX decreased marginally by 0.4% to 1,252.1pts, while the HNX-INDEX plumped considerably by 1.1% to 300.2pts.

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