The stock market experienced a volatile trading week with 4 sessions of increase and 1 session of sharp decrease on Thursday. The pressure mainly related to the case at Van Thinh Phat Group and SCB Bank had a negative impact on investor sentiment. At the end of the week, VN-Index closed at 1,095.6 points, equivalent to a decrease of 0.5% compared to the end of last week. HNX-Index lost 0.2% to 226.10 points and UPCOM-Index fell 1.2% to close at 84.99 points.
This week, liquidity remained flat with a trading value of VND21,191 billion. Foreign investors continued to return to net selling on all three exchanges, mainly on HOSE with a value of VND910 billion. HNX recorded a slight net purchase of VND5 billion while the net selling value on UPCOM reached VND49 billion. In total, foreign investors net sold VND954 billion on all three exchanges.
MWG (-6.9%), TCB (-3.5%), VNM (-2.4%) were the large-cap stocks that dragged the market down. On the contrary, the recovery of the main index led by BID (+1.7%), NVL (+9.3%) and VCB (+0.5%) curbed the sell-off.
According to Mr. Dinh Quang Hinh - Head of Macro and Market Strategy Department, VNDIRECT Securities Company, the recovery trend of the domestic stock market has not been violated, especially after the weekend session when the indices recovered impressively and closed at the highest level of the session. It is likely that the VN-Index has successfully created a second bottom at the 1,070 - 1,080 point range.
At the same time, the market also received more positive macroeconomic information. Specifically, the cooling pressure on exchange rates created conditions for the State Bank to stop issuing treasury bills and pump liquidity back into the banking system. Some commercial banks continued to adjust deposit interest rates.
Speaking to Lao Dong, Mr. Dinh Quang Hinh said: "These developments show that the domestic monetary policy environment continues to be maintained in a loose direction, supporting economic recovery and growth. In that context, I think that smart money will be less cautious and gradually return to the market. Turning to the real estate market, the Government is also determined to remove legal obstacles for real estate projects.
It can be seen that the trend of supporting growth is a common trend in many Asian countries, not just Vietnam. With such a policy orientation, we can expect a recovery trend in economic growth and profits of listed enterprises in the fourth quarter of 2023 and 2024, thereby creating momentum for the stock market."
Mr. Hinh believes that investors can take advantage of the corrections in the upward trend of the market to increase the proportion of stocks. 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.
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