Stocks today June 4: VN-Index ended its losing streak

Stocks opened around reference, then dropped about 7 points, but quickly regained green. The above developments were only limited to the first 30 minutes of trading. In the second half of the morning, the market mainly fluctuated around reference, although selling pressure still prevailed.

Except for the first few minutes, the HoSE representative index improved significantly in the afternoon. The stock gradually climbed and tested the 1,830 point mark before entering the ATC session. VN-Index closed at 1,831.5 points, up more than 12.5 points compared to yesterday. Thus, the series of corrections lasting 7 consecutive sessions has ended.

However, stocks fell into a state of “green shell, red heart” when the entire HoSE floor had 164 stocks decreasing, more than 140 stocks increasing. The difference between the two groups is not high, showing that supply pressure has cooled down.

Cash flow is differentiated between industry groups. Among them, the construction and materials group had the most negative developments, notably PC1 decreased by 2.1%.

On the contrary, oil and gas stocks performed well. Petrolimex’s PLX today increased to 41,850 VND; BSR closed 3.8% higher than reference; OIL, PVC, PVD… codes all increased by 2% or more.

However, if considered by each stock, Vingroup’s VIC is the most important pedestal, contributing more than 4 points to the increase of the VN-Index. This code accumulated 1.3% in today’s session with a liquidity of more than 497 billion VND. In addition, the general index is also supported by other banking and real estate stocks such as STB, VHM or BID.

During the session, the stock market ended its decline and liquidity improved. The total transaction value on HoSE reached more than 22,100 billion VND, about 1,500 billion VND higher than yesterday.

Market sentiment continued to be weighed down by foreign cash flow developments as they net sold about VND 5,775 billion for the 15th consecutive session. However, most of it came from put-through transactions at VIC. Meanwhile, foreign investors are still strong net buyers in FPT.

The market became more positive after the news that the State Securities Commission (SSC) held a discussion with about 100 international investors and worked with rating organization MSCI in Singapore, focusing on exchanging market reform solutions. Industry leaders said they have implemented many important reform solutions to improve accessibility for foreign investors.

Investors attending the discussion assessed that Vietnam possesses many advantages to attract long-term capital flows thanks to its economic growth foundation, increasingly important position in the global supply chain and determination to promote structural reforms to build a modern, transparent and internationally integrated capital market.

In the news before trading hours this morning, VPBank Securities (VPX) commented that the downward momentum of VN-Index had slowed down in the previous session. Bottom-fishing demand appears but is still quite cautious, while cash flow is still weak and differentiation between industry groups continues, making the balance not really clear.

“The 1,800 point area is playing an important support role; if maintained, it can help the index form an accumulation base before new signals appear,” this analysis group predicted.