Investors are "disliking" stocks
In the current unstable market context, savings and gold are two investment channels that are most popular with people with money.
Figures recently released by the State Bank show that by the end of September 2023, deposits from economic organizations increased by 4.65% compared to the end of last year, while deposits from individuals increased by 9.95%.
Specifically, residents' deposits as of the end of September reached VND6,449 trillion, an increase of approximately VND16,000 billion and marking the ninth consecutive month of increase since the beginning of the year. If calculated from the beginning of the year until now, residents' money flowing into the banking system has been more than VND583,000 billion.
Besides savings deposits, gold is also the most highly valued channel in the market. Thanks to gold regaining its position as a “safe haven”, the price of gold has been continuously pushed to new highs.
Although it is being "criticized" and making traders worried, it turns out that this investment channel is even more "profitable" than gold with a profit rate of 6.5% in just 1 month. Illustrative photo
Meanwhile, along with real estate, stocks are considered the most "dismal". In recent sessions, the VN-Index has fluctuated strongly, making investors more cautious when deciding to trade. As a result, the cash flow into stocks is showing signs of exhaustion. In recent sessions, liquidity on the Ho Chi Minh City Stock Exchange has not reached VND15,000 billion.
Specifically, this week, the trading volume per session on the Ho Chi Minh City Stock Exchange was VND11,735 billion (November 27), VND13,984 billion (November 28), VND12,435 billion (November 29), VND14,467 billion (November 30), respectively, much lower than the average trading volume of VND17,350 billion in November.
These data show that investors are “disliking” stocks, so they choose to save money and buy gold. However, there is an unexpected fact that stocks still turn out to be more profitable than both savings and gold.
Return on investment is still 6.5% in 1 month
Money is flowing into savings channels despite savings interest rates continuously hitting new lows, falling below 5%/year for a 12-month term.
In addition, the price of gold increased sharply, but because the difference between buying and selling prices was too high, when the price of gold increased by nearly 5%, gold buyers only received half of this increase. That means in November, the cash flow invested in gold by people only brought a profit of 2.5% to 3%.
Meanwhile, the stock market's return on investment in November was unexpectedly high.
Closing November, the VN-Index stopped at 1,094.1 points after a slight decrease. Despite weakening in recent sessions, the VN-Index still increased by 65.94 points, equivalent to 6.41% compared to the last session of October.
The market capitalization value of the Ho Chi Minh City Stock Exchange increased by VND267,747 billion (about USD10.9 billion), equivalent to 0.65% to VND4,408,575 billion (about USD180 billion).
It can be seen that in November, the stock market still has the ability to generate high profits compared to other investment channels.
Stocks in trouble in the near future
Although it increased throughout November, the VN-Index weakened towards the end of the month. And this may continue in the near future.
Yuanta Securities Company believes that the market may continue to correct and the VN-Index may retest the 1,085-point zone. At the same time, the market is still in a short-term accumulation phase, so liquidity may remain low and cash flow may be differentiated between stock groups, but in general, cash flow is still weakening, so it is difficult for the market to confirm a clear trend in the next few sessions.
In addition, the short-term sentiment indicator continued to increase slightly, showing that investors are becoming more optimistic, but overall investor sentiment is still not completely clear.
“The short-term trend of the general market remains neutral. Therefore, we recommend that short-term investors can continue to hold a balanced proportion of stocks and should not buy again at this stage,” Yuanta advised investors.
Source
Comment (0)