Selling pressure may remain overwhelming

Vietnamese stocks remained green throughout the morning session of January 6 with the recovery of banking stocks, of which the most notable codes were VCB (+1.1%), BID (+1.6%)... However, liquidity remained low, showing that trading on the market was somewhat gloomy.

Entering the afternoon session, market sentiment was low, supply from small and medium-sized stocks was very strong. As a result, the general index faced great pressure and was forced to decrease points.

At the end of the session, the VN Index closed at 1,246 points, down 8 points, equivalent to 0.66%.

According to VCBS Securities Company, the general index has not yet formed a bottom and selling pressure may continue in the coming sessions. Investors need to be cautious in disbursing, paying attention to profit-loss stop-loss levels to manage risks.

Dragon Capital Securities Company (VDSC) commented that the supply of stocks is putting pressure while the supporting cash flow is still cautious. The rapid decline in stock prices has pushed the market into the short-term oversold zone. The possibility of a further decline in points may occur in the next session. It is expected that the market will be supported at the 1,240 point area and recover to test supply and demand before there are more specific signals.

"Investors need to slow down and observe supply and demand at the support zone, temporarily restructure the portfolio to reduce the proportion to minimize risks" - VDSC recommends.