Vietnam Daily Market Recap Aug 18, 2022 – CTG & Textile sector

Market commentary: The VN-Index finished the derivative expiration session below a key resistance level 1,280-1,300pts

Large-cap stocks dominated today’s performance of the index, which finished with a marginal decline of 1.6pts at 1,273.7pts. Asian and European stocks fell on Thursday morning, after minutes from the last US Federal Reserve meeting indicated the central bank would prioritise fighting inflation ahead of economic growth for longer than some investors had hoped. VN-Index opened cautiously with a gap down of 1.8pts. The market started with high frequency trading in a narrow range as most small and medium cap equities saw considerable selling pressure. However, the market was propped up by pillar stocks. The market’s range of motion broadened considerably from the morning to the afternoon of the derivative maturity session. As large-cap stocks were deployed to moderate the index, market spreads have increased from around 3.0pts to 14.6pts. Upon unexpectedly getting favorable information, cash flow shifted toward the securities sector today, making for a pleasant change in the gloomy picture that had been building up for nearly 2 weeks. Notably, the VN-Index finished the day almost unchanged, but the number of stocks that declined completely overwhelmed the rest, despite the liquidity foundation remaining at a high level, indicating that the group of small and medium-cap stocks is the main target of coretion pressure. SAB (+2.7%), VIC (+1.2%), GAS (+1.2%), VNM (+1.1%), MSN (+0.6%), and ACB (+0.8%) were the stocks that supported the market today. Meanwhile, NVL (-1.5%), BID (-1.0%), CTG (-1.2%), BCM (-1.6%), HPG (-0.6%), VHM (-0.3%) had a positive correlation with Index. At the end of the session, the VN-Index declined marginally by 0.1% to 1,273.7pts, and the HNX-INDEX decreased by 0.5% to 301.2pts.

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