The market has just experienced a negative trading week when the general index continuously fell sharply and broke lower support zones.
Statistics on trading on the HOSE floor last week showed that the VN-Index had 4 consecutive sessions of decline and only 1 session of increase at the end of the week on October 20. At the end of the trading week, the VN-Index decreased by 46.7 points.
Liquidity on HOSE reached VND78,465.7 billion, up 12.8% in value and trading volume also increased by 17.1%, showing stronger selling pressure compared to the recovery level last week, but still below average after the market fell sharply from the 1,250 point price zone.
In the short term, the market is still quite volatile and it will take time to find a balance for the accumulation process.
According to many experts, the correction from 1,250 points to the current level has caused many stocks to fall sharply and opened up new opportunities for investors.
Experts from VPS Securities Company commented that the valuation of the Vietnamese stock market is currently at a reasonable level. Accordingly, the P/E of VN-Index has reached more than 13.32 times, which is quite attractive for long-term investors.
However, the problem now is market liquidity. Banking system liquidity is abundant, interest rates are low, but liquidity in the stock market is down.
From an average of over VND20,000 billion per session in the past few months, liquidity on the HOSE floor has continuously decreased, currently only around VND11,000 - 12,000 billion.
Cash flow is not flowing into stocks as expected, even though savings interest rates have returned to low levels like during the COVID-19 pandemic.
The main reason is that most investors assess that this decline is not a bearish wave, so even though they do not buy new, they still calmly hold on to their stocks, causing liquidity to "lose pressure". In addition, investors observe the fluctuations in exchange rates and the continuous net selling trend of foreign investors.
Dr. Nguyen Duy Phuong, Investment Director of DG Capital, said that the market may continue to adjust and fluctuate strongly due to the risks of the current world economic and political situation.
The third quarter business results reporting season is coming, businesses are gradually revealing their business results for the past quarter with significant improvements along with the economic recovery, in which, the industries are thriving such as securities, fertilizer, technology and some industries continue to improve positively such as steel, banking...
This is the fulcrum for investors to make decisions in the future along with macro analysis.
Dr. Nguyen Duy Phuong - Investment Director of DG Capital - stated his opinion: Cash flow will continue to look for opportunities in the market, but will certainly be strongly differentiated. Stocks of enterprises that demonstrate solid value will strongly attract cash flow, while stocks that increase according to expectations will be subject to adjustment pressure.
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