The stock market had a pretty impressive recovery session after the sell-off at the beginning of the week. Although the index recovered well, liquidity was noteworthy when it dropped quite deeply compared to the beginning of the week.

While the general market has recovered most of the points lost in the "red-hot" session on August 5, foreign investors still maintained a strong selling position of more than 750 billion VND, with the focus of transactions being high-priced stocks.

Therefore, yesterday's increase was assessed by experts as not having many signals to confirm that the bottom had formed and was still leaning more towards a technical recovery. The positive point was that VN-Index recovered and closed back to the average MA200 level of the session, showing that selling pressure had somewhat eased.

Trading developments in the first sessions of August are reflecting investors’ risk aversion, especially individual investors. The picture of second quarter business results, although very positive, has not been able to improve the general trading sentiment. Accordingly, the total profit after tax and minority interests of enterprises listed on HOSE reached more than VND105,000 billion in the second quarter, up 16.1% over the same period last year and 5.1% over the previous quarter.

In the remaining time of the month, the risk of a decline still exists, investors need to monitor factors that may affect the market. The general downward pressure on major stock markets will contribute to negatively impacting trading activities in the Vietnamese market.

Commenting on the market trend, experts from CSI Securities Company said that because the momentum for the increase has not been confirmed, investors should not rush to increase their holdings or open new buying positions in stocks that are increasing in points. Instead, they should continue to prioritize the observation position and patiently wait for more signals confirming the reversal, or only gradually increase stocks that have made a profit when the market corrects to the 1,200 point mark in the next session. The technical recovery is expected to reach the 1,245 point mark.

Asean Securities Company also expressed its opinion that the market is temporarily in balance thanks to the positive return from the inter-market, the increase in yesterday's session shows the effort to recover and is in sync with the world. The market is maintaining in the oversold zone so the recovery is understandable, however, the buying trend is not really drastic, showing that the current price range is not necessarily an attractive enough valuation range.

The momentum is good but not strong, as shown by the VN30 group of stocks only recovering slightly compared to the previous correction pressure. Therefore, caution is still the priority and investors should avoid chasing and just temporarily observe the market, maintain the proportion at a low average level and wait for the market to establish a bottom.