Stock Market 7/22: Strengthening Risk Management and Adjusting Weight When the Market Recovers

Vietnamese Stock Market Analysis: July 22 - Prioritizing Risk Management During Market Recovery

The domestic stock market continued to face adjustment pressure with increased selling pressure across the board, particularly in the oil and gas sector. As technical signals still lean toward a negative trend, experts recommend investors prioritize risk management, reduce stock allocation during recovery phases, and limit the use of financial leverage.

Overall Market Performance

At the close of trading on July 21, the VN-Index decreased by 7.01 points (equivalent to 0.55%) to reach 1,263.56 points. Market liquidity remained low with total trading value exceeding 10,000 billion VND, of which block trades accounted for more than 2,500 billion VND.

On the HNX exchange, the HNX-Index dropped by 1.04 points (0.45%) to 229.89 points with a trading value of over 1,500 billion VND. UPCo maintained its position as the most liquid stock with trading volume exceeding 40 million shares.

Adjustment Pressure Concentrated in Oil and Gas Sector

Notably, the oil and gas sector experienced the strongest adjustment pressure in the recent session. Specifically, the PVB index decreased by 2.06%, GAS by 1.56%, PVD by 2.39%, HPG by 1.97%, and PLX by 1.82%.

According to analysts, the oil and gas stocks faced adjustment pressure after significant fluctuations in recent times. Additionally, the global oil price trend has also impacted investor sentiment in this sector. Brent crude oil was trading around $78 per barrel, slightly lower than its recent high.

Technical Analysis and Market Trends

Technically, the VN-Index is in a short-term downtrend with momentum indicators such as RSI and Stochastic both in the oversold zone. However, the MA20 line continues to support the index at around 1,250 points.

According to Mr. Nguyen Van An, Deputy Director of Analysis at ABC Securities: "The VN-Index is currently undergoing a correction after the previous strong rally. Selling pressure still dominates and may continue in the next trading session. Investors should be cautious and prioritize risk management."

Expert Recommendations

Given the market's development, most experts have provided cautious recommendations:

• Risk management as the top priority: Investors should focus on risk management, especially in a volatile market environment with unpredictable fluctuations.
• Reduce stock allocation: It is advisable to reduce stock allocation during recovery phases to limit risks when the market continues to adjust.
• Limit the use of leverage: Avoid using financial leverage during periods of high market volatility to prevent forced liquidation risks.
• Focus on quality stocks: Prioritize selecting stocks with strong financial foundations, good growth prospects, and reasonable valuations.

Short-Term Market Outlook

According to a report from DEF Securities, the market may continue to adjust in the short term with an important support zone around 1,230-1,250 points. However, the long-term market outlook remains positive due to stable macroeconomic factors and the global economic recovery.

Ms. Tran Thi Mai, Director of Analysis at DEF Securities, stated: "We expect the market to experience slight recovery in the next trading session, but the overall trend remains unchanged. Investors should take advantage of any increases to restructure their portfolios and reduce allocations to risky stocks."

Market Summary

Conclusion

The stock market continues to show complex movements with adjustment pressure from multiple stock groups. In this context, risk management has become particularly important. Experts recommend that investors remain cautious, reduce stock allocations, and limit the use of financial leverage. However, this also presents an opportunity to restructure portfolios and prepare for future recovery phases.