Market comment – July 29
The markets edged lower for the second consecutive day today and most significantly volume dropped sharply as many retail investors took profits and exited for the time being.
The rally has not lost all its fizz yet but investors are definitely having some second thoughts for the moment. Market breadth widened slightly and foreigners were net buyers again with activity levels down Wednesday in actual terms.
Blue chips behaved quite different today in that most actively traded stocks lost a little ground, in sharp contrast to Wednesday when large gainers and large losers almost canceled each other out in Ho Chi Minh City This suggests a slightly more negative tone in the market but then on the other hand bids did recover a little bit toward the close.
However, the overall level of bids and offers has dropped to the lower end of the recent range and would certainly need to recover if the market is to resume its upward trajectory over the short term. Meanwhile, China’s sharp drop today has not caused too many ruffles in other international markets so far but even so, the short-term outlook has become a little cloudier for the second half of the week. As usual, all depends on the overall level of bids and offers and then of course, actual traded volume. We remain fairly cautious over the short term and very cautious indeed over the medium term.
Fiachra Mac Cana,
Head of Research at Ho Chi Minh City Securities Corp.
thanhnien
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