The stock market last week moved in a narrow range amid many important macro news. The VN-Index climbed to 1,102.16 points, up 0.6% from the end of last week. The HNX-Index increased 0.07% to 226.26 points and the UPCOM-Index increased 0.24% to close at 85.19 points.
This week, VHM (+4.6%), BID (+1.7%), HPG (+1.9%) increased sharply and were the large-cap stocks leading the recovery. On the contrary, banking stocks VCB (-1.2%), STB (-2.8%) and TCB (-1.0%) put pressure on the general index.
Liquidity decreased sharply this week as the market entered an accumulation phase and had not yet formed a clear trend, making speculative cash flow more cautious. Accordingly, the transaction value on all three exchanges only reached VND15,065 billion, down 29% compared to last week. This week, foreign investors continued to net sell on all three exchanges, mainly on HOSE with a value of VND705 billion. The two exchanges HNX and UPCOM recorded net selling values of VND12 billion and VND32 billion, respectively.
Speaking to Lao Dong, Mr. Dinh Quang Hinh - Head of Macro and Market Strategy Department, VNDIRECT Securities Company - commented that the stock market has just had a week of recovery after receiving some supportive macroeconomic information both domestically and internationally. Specifically, inflation in the US continued to cool down, reinforcing the market's expectation that the FED will keep the operating interest rate unchanged at its meeting in mid-December.
Domestically, the economic recovery accelerated in November with industrial output, total retail sales and export figures all improving compared to the previous month. At the same time, inflation and exchange rates cooled down, creating conditions for the State Bank to continue net injection through the OMO channel, thereby reducing the amount of outstanding treasury bills to only about VND15,000 billion. This move will significantly improve investor sentiment and promote speculative cash flow back into the market.
"With more positive changes in macro factors in recent weeks, I believe that the market is still maintaining its recovery trend. The VN-Index may continue to accumulate and build a foundation in the 1,080 - 1,020 point range before moving towards higher resistance levels.
In that context, long-term investors can consider gradually accumulating stocks for the coming period. Prioritize industry groups with prospects of positive business results improvement in the fourth quarter such as export groups (steel, wood products, furniture, etc.), public investment, industrial park real estate and securities" - Mr. Hinh assessed.
The analysis team from SHS Securities Company predicts that the market is still unable to break out of the 1,100 point mark, but there are many positive signals, the possibility of forming a new uptrend is quite high. With a fairly positive short-term movement, it is very likely that the market will form an accumulation base within the range of 1,100 points - 1,150 points. Short-term investors can disburse if the VN-Index maintains trading above 1,100 points and liquidity gradually improves.
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