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Vietnam Daily Market Recap Jul 19, 2022

Daily Market Recap 19/07/2022    60


Market commentary: The VN-Index experienced a volatile trading session

The VN-Index had a V-shaped session, declining sharply in the morning but bouncing back strongly in the afternoon on the back of bottom-fishing cash flow, finishing the day up 0.2pts at 1,178.3pts. European and Asian stocks declined on Tuesday as traders anticipated the European Central Bank raising interest rates and Covid-19 lockdowns in China added to fears for global economic growth, and the VN-index opened cautiously with a gap down of 0.4pts. Securities, Real Estate, and Public Investment equities that had seen significant rallies during the previous two weeks were the primary contributors to the market’s sharp downturn. The main pressure of the correction was felt throughout the VN30 group as well, sending the VN-Index plunging into bearish territory. However, Oil & Gas, as well as Chemicals, had a technical recovery that mitigated the market’s early morning decline. In contrast to the morning’s declines, bottom-fishing cash flow notably contributed to the Index’s V-shaped rebound. Bottom-fishing cash flow was initiated when the session low of 1,168.9pts was reached, along with a string of stocks in Real Estate, Securities, and Public Investment. After that, the Index continued its upward trend, regaining its reference level and eventually topping out at 1,180.5pts for the day (close to the important resistance level of Technical Moving Average 20 (1,183.2)). There was a little tremor here just before the start of the ATC session. The market managed to claw back some ground and end on a stronger note, although decliners still outnumbered winners, indicating that capital flows were segmented and directed toward certain sectors. GAS (+4.5%) alone contributed 2.1pts to the Index followed by VIC (+1.2%), PLX (+4.6%), VNM (+1.5%), DGC (+4.8%), and SAB (+1.7%). Stocks with negative correlation with the market were VCB (-1.0%), HPG (-2.0%), CTG (-1.3%), MWG (-1.6%), BCM (-2.2%), and VHM (-0.3%). At the end of the session, the VN-INDEX inched up 0.2% to 1,178.3pts, while the HNX-INDEX decreased marginally by 0.1% to 284.4pts.

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