The stock market opened yesterday (July 17) in the green and at one point seemed to have conquered the 1,290 point threshold thanks to the leadership of banking stocks. However, before reaching this threshold, strong selling pressure in other sectors caused the VN-Index to reverse and decline, only to be stopped when it reached the MA20 support level.

Entering the afternoon session, the cash flow once again found the banking group, even stronger than the morning session, pulling many banking stocks to the ceiling such as MBB to the ceiling of 25,150 VND, TCB also reached the ceiling, then spread to other stocks/industry groups, pulling the VN-Index to the threshold of 1,290 points. However, as soon as the index surpassed this psychological barrier, selling pressure was waiting and was massively released into the market, pushing the VN-Index to plummet.

Right before the ATC session, sell orders suddenly poured into the board, causing the VN Index to quickly reverse and decrease. Under strong selling pressure from other groups, especially the real estate sector, the market was not strong enough to keep the VN-Index from increasing at the end of the session.

At the end of yesterday's session, VN-Index decreased by 12.52 points (0.98%) to 1,268.66 points. The sell-off in the last minutes of the session helped liquidity increase sharply with 1.23 billion shares transferred on the HoSE, equivalent to a transaction value of VND29,327 billion. In the whole market, the total transaction value today reached VND33,500 billion.

In the context of a strong sell-off from domestic investors, it was surprising that foreign investors turned to net buying VND358 billion on the HoSE. On the HNX and UPCoM, foreign investors net bought VND5.3 billion and VND56 billion, respectively. Banking stocks were also the sector that foreign investors net bought a lot in yesterday's session.

Currently, according to analyst Dr. Nguyen Duy Phuong - Investment Director of DG Capital, the selling pressure is concentrated on leading stocks of industry groups in the previous period such as steel, shipping, aviation, showing that stock holders are taking more drastic profit-taking actions. Therefore, this expert maintains the view that the expected balance zone is the threshold of 1,265-1,275 points, investors should consider paying attention to disbursement.

Quantitative indicators do not show a deterioration in the market as cash flow is still “sticking” well to stock groups, especially groups leading this recovery wave such as banks. The discount level in the group of stocks that have increased well is not too strong, the price base of the stocks does not show signs of being violated. This is consistent with the cumulative and consolidated movements after the surges last week.

In addition, quantitative indicators still show that demand is strong enough to absorb short-term supply and dominate the current recovery. The circulation of cash flow is recorded to continue smoothly, despite fluctuations. Accordingly, the next developments can be expected to see a return to growth, especially in stocks that have accumulated price bases, while the room for growth is still attractive.