Investors are frustrated because the problem of HOSE is getting worse and worse

Vietnam’s stock market on June 8 continued to record the second strong correction session in a row. The selling pressure to take profit spread from the morning to the end of the afternoon, starting with some groups of stocks that had increased strongly before such as banks, securities, steel, oil and gas and then spread to the whole market. On HOSE alone, there were 321 decliners and only 94 gainers.

At the end of the session, VN-Index dropped deeply by 38.9 points to 1,319.88 points. VN30-Index decreased to 45.13 points, to 1,438.97 points. The HNX-Index also dropped sharply to 12.25 points, to 306.39 points.

Market liquidity remained high with a total trading volume of 1.27 billion shares, equivalent to a trading value of VND38 trillion. In which, order matching transactions alone set a record and accounted for 35,200 billion dong.

The sharp decline of the market in the last 2 sessions is what many experts and investors have predicted after a series of continuous gains from the beginning of May until now. However, what makes investors most pressing right now is that the problem of the HOSE trading system is getting more and more serious, but the leaders of the Ho Chi Minh City Stock Exchange (HOSE) have not taken any effective measures to solve it. , as well as reasonable explanations to investors.

Specifically, in this session, the situation of “price turmoil” and “stiff floor” continued to get worse. The indices stood still for many hours, stock prices jumped wildly, making investors not know what price to choose to buy and sell. While the selling pressure increased, but not able to handle it in time, it made investors more frustrated. “How many points is VN-Index losing?”, “How much has the stock price increased or decreased?” “Is the market going up or down?”… are very common questions in this session.

The fact that HOSE recommends that securities companies stop canceling and correcting orders makes investors even more inhibited. Not to mention, when investors place an order, it takes 5-7 minutes to display and match, causing them to miss many opportunities to buy and sell at the best price. “I only have the only way to close my eyes and sell at the market price (MP). Just place a great deal, match wherever you can, as long as you can sell stocks to avoid losses when the market is running away” – a trader investment said.

As noted by the reporter, the wave of anger of investors until this afternoon was still burning hot throughout forums and groups on social networks Facebook, Zalo… They blamed HOSE leaders for being slow. Slow to fix the problem and no satisfactory explanation yet. Some even asked HOSE leaders to resign. Some others questioned whether the securities company blocked the cancellation and correction of investors’ orders in accordance with the law…

On his personal page, securities expert Nguyen Hong Diep wrote: “The ban on canceling/editing orders is a “backward step” for Vietnamese stocks. If the price is too high, it needs an adjustment. Investors therefore need good risk management, watch to accumulate more when the price is good.”

Back to market fluctuations. MB Securities Company (MBS) said that the market has dropped nearly 60 points in the past 2 sessions as investors do not have many choices in trading and mainly have to use market orders to place orders. As a result, investor sentiment in today’s session was weaker as many stocks fell to the floor at the close compared to yesterday.

Market liquidity on June 8 remained at a high level and foreign investors continued to be net sellers, but the pressure was significantly reduced, to only 290 billion dong.

Based on technical factors, MBS believes that after a strong drop, the market often has technical retracements and strong short-term support zone for the index at 1,300-1,315 points.

Expecting the correction to end soon, Dong A Securities Company assessed that after 2 strong correction sessions, VN-Index and many stocks quickly returned to the support zone. Specifically, VN-Index is having short-term support at 1,300 points and further at 1,280 points if selling pressure persists. The group of production and business stocks, which have healthy and stable corporate intrinsic factors, especially leading stocks, are becoming more attractive when the price has not increased much during the recent hot fever and is currently low price relative to the market.

Trading liquidity still remained at a high level, the buying force in the market remained stable, expecting the correction will end soon and the market will become more balanced to move into the accumulation phase. Dong A Securities Company recommends that investors closely monitor the correction, buy leading stocks at the support price zone.

Yuanta Securities Vietnam said that the VN-Index may continue to test the threshold of 1,300 points in the session 9-6. The market also showed signs of entering the accumulation phase, showing that the cash flow is likely to differentiate in the next trading sessions. However, the risk has shown signs of increasing, so the market may only have very short recovery spans and quickly return to the short-term downtrend.

According to the company, the short-term trend of the overall market has been downgraded from bullish to bearish. Therefore, short-term investors can consider reducing the proportion of stocks to the balance level and should not buy at this time.

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