Vietnam Daily Market Recap May 24, 2022 – HDG

Market commentary: The VN-INDEX had a miraculous recovery at the close of the afternoon session

Significant swings were seen in the afternoon session of the VN-INDEX when Material sector received unfavorable news; nevertheless, the bottom-fishing demand towards the end of the afternoon assisted in a strong recovery of the VN-INDEX. Stock dropped in Europe and Asia, while Wall Street futures signaled a short-lived rally would go into reverse after a US central banker heard the alarm on inflation and Japanese factory markets activity. At the same time, VN-INDEX opened cautiously with a 0.1pts gap up. The market became fragmented and struggled to trade in the vicinity of the reference level. After that, with support from Banking and Consumer groups, the Index finished the morning session with a little rise, despite the fact that certain stocks in the VN30 bucket were under pressure to adjust its prices. As soon as the Material sector became aware of some unfavorable news in the media, it initiated a significant sell-off, which contributed to a pessimistic sentiment in the market as a whole during the afternoon session. The VN-INDEX continued its precipitous decline and came within striking distance of an important psychological support level of 1,200pts. However, at this point, bottom-fishing demand was strenuously activated and focused on Banking, Securities, and Real Estate, which helped the VN-INDEX miraculously recover and bounce strongly to session high of 1,233.4pts. The following equities, MSN (+4.3%), VCB (+1.6%), VNM (+3.9%), CTG (+4.0%), and GAS (+2.2%), all shown a positive correlation with the market. On the other side, the stocks of HPG (-5.0%), HVN (-2.5%), PGV (-2.4%), SSB (-1.3%), and VCG (-1.1%) were those that were causing resistance. At the end of the session, the VN-INDEX increased considerably 1.2% to 1,233.4pts, and the HNX-INDEX rose 1.8% to 305.9pts.

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