The market sold off, should I catch the bottom?

Stock market The domestic market last week recorded a series of sharp declines, causing VN-Index to lose 146.49 points, HNX-Index down 41.07 points and UPCoM-Index “evaporated” 8.27 points.

According to the analysis group under Securities Company In Asean (Asean SC), the market is being sold out excessively, and is expected to recover soon, especially when the bottom-fishing cash flow shows signs of being more active. Besides, investors should note that May 19 is the expiration date of the May derivatives contract, which can have strong fluctuations on the maturity date and near maturity.

“Forecast in the next trading session, VN-Index There will be a decreasing inertia in the morning so that VN-Index can test the support area near 1,160 – 1,180 points and beyond the support area of ​​1,120 – 1,140 points. The tug-of-war is expected to appear at the low price range and may help the index have a certain recovery afterwards, before there is a clearer trend delineation at the end of the day.” ASEAN SC’s report stated.

Experts from MB Securities Company (MBS) believe that in the short term, when there are fluctuations in the international market, the VN-Index will return to re-test the range of 1,260 – 1,300 points. However, MBS recommends that investors maintain a high proportion of cash and avoid using margin during this period.

“Investors may also consider exploratory disbursement when the index retests strong support areas around the nearest bottom and concentrates on some groups of stocks with good fundamentals and sensitive to the market’s recovery. after a deep decline such as oil and gas, electricity, insurance, building materials, seafood, logistics, tourism, securities…”, MBS experts recommend.

From an optimistic perspective, experts at Rong Viet Securities Company (VDSC) believes that the market can recover. According to VDSC, although VN-Index recorded a deep losing week, the downward momentum continued to lead the market to penetrate important support levels in turn.

However, the highlight in the last session of the week was that the cash flow at low prices started to be more active below the psychological threshold of 1,200 points. It is expected that the cash flow to catch low prices will continue to be active, especially around 1,150 points of the VN-Index, and help the market recover.

“Therefore, investors can expect the market’s downtrend to stop soon, and at the same time, they can consider choosing a good price to buy at large stocks with good valuation.” VDSC said.

Meanwhile, from a cautious perspective, Yuanta Securities Vietnam (YSVN) believes that the market may soon form a bottom for a rally and the VN-Index may still struggle around 1,200 points in the next few days. first session of the week. At the same time, short-term risks are still high and technical recovery spans may appear in the indexes.

“Short-term investors should not participate in bottom fishing at this stage. In addition, the short-term sentiment indicator dropped deeply into the overly pessimistic zone, showing that the market may soon form a bottom for a rally.” experts at YSVN noted.

Similarly, an expert of KB Securities Vietnam (KBSV) said that with the downtrend playing a dominant role in the short term, the VN-Index is facing the risk of extending the correction down to the region. support near 1,160 points and deeper at 1,130 points.

“Investors are recommended to reduce the weight of trading positions in the early retracements and only increase the weight again if it returns to the support zone for the target stocks.” This company’s analytical report writes.

Ending last week’s session, VN-Index dropped 56.07 points to 1,182.77 points. HNX-Index fell 13.13 points to 302.39 points. UPCoM-Index dropped 2.83 points to 93.61 points.

Foreign investors’ trade took place in a positive direction when buying 84.5 million shares, worth 2,862 billion VND, while selling 63.5 million shares, worth 2,270 billion VND. Total net buying volume was at 20.9 million shares, equivalent to a net buying value of VND 592 billion.

On HoSE alone, foreign investors net bought back 588 billion dong, equivalent to a net buying volume of 21.8 million shares.