Which stocks are leading?

VN-Index's breakthrough in the first week of spring: Which stocks are leading?

Experts from VNDirect commented that good liquidity and wide spread, not only in banking stocks, is a positive start for the Vietnamese stock market in the year of the Dragon 2024.

The Vietnamese stock market started the new year with two exciting trading sessions. The VN-Index continuously increased, surpassing the 1,200-point mark and maintaining its upward momentum above the important psychological threshold. In just two sessions, the market capitalization scale on the Ho Chi Minh City Stock Exchange alone increased by VND45,143 billion, equivalent to USD1.83 billion. The market capitalization on the three exchanges increased by over USD2.22 billion.

In the opening trading session of the Year of the Dragon (February 15), VN-Index increased by 0.33% after the profit-taking session at the end of the session, closing at 1,202.5 points with positive liquidity. The increase was led by the banking group, typically stocks such as TCB (+3.0%) and MBB (+2.8%). In addition, stocks of small-cap banks also recorded strong increases, for example: MSB (+6.7%), NVB (+5.6%) and OCB (+5.0%).

The VN-Index continued to increase by 0.6% in the following session, closing at 1,209.7 points. The price increase from the Banking group spread to other stocks in the VN30 basket such as GVR (+6.8%), MSN (+2.0%), VIC (+3.3%) and VNM (+3.6%), helping the VN-Index maintain its upward momentum. Despite profit-taking selling pressure in the afternoon, the VN-Index still rebounded at the end of the session.

Overall, in the two sessions, the VN-Index this week was pulled up by blue-chip stocks such as VIC (+3.7%), GVR (+5.1%), VNM (+3.6%) and TCB (+3.2%). On the contrary, some banking stocks such as BID (-0.8%), VCB (-0.4%) and ACB (-1.4%) adjusted after the recent price increase, putting pressure on the general index.

Last week, the trading value on the three exchanges increased sharply by 20.2% compared to the previous week thanks to positive sentiment after Tet, reaching VND20,637 billion/session. Foreign investors continued to be net sellers, with a net selling value of VND768 billion on all three exchanges. Accordingly, foreign investors net sold VND726 billion on HoSE and VND62 billion on HNX, while net buying slightly VND20 billion on UPCOM.

According to Mr. Dinh Quang Hinh, Head of Macro and Market Strategy Department, VNDirrect Analysis Block, with good liquidity and wide spread, this is a positive start for the Vietnamese stock market in the year of the Dragon.

Analysts from VNDirect said that investors' cash flow soon returned to the stock market after the Tet holiday. At the same time, this was also a factor that helped the VN-Index break through the psychological threshold of 1,200 points.

Market breadth is also more positive as many industry groups take turns gaining points and maintaining the market rhythm instead of focusing only on the banking group as in the pre-holiday period. Domestic investors' sentiment is currently quite excited thanks to positive supporting information on domestic macro, especially data on PMI, import-export, FDI in January, as well as the picture of Q4/2023 business results of listed enterprises that have clearly recovered.

“This reinforces market sentiment towards a brighter 2024 shareholder meeting season and Q1/2024 earnings season. With the above factors, there is no sign of the possibility of “reversing” the current upward trend of the market,” said Mr. Dinh Quang Hinh.

According to Mr. Hinh, VN-Index may head towards the old peak around 1,240 points (+/- 10 points). This is the strong resistance zone and is strong enough to challenge the market's uptrend.

Source