Average stock liquidity lowest in the past 6 months

Investors are still hesitant to invest in stocks - Photo: QUANG DINH

VN-Index closed last week at 1,283.04 points, up nearly 38 points, but liquidity continued to decline sharply.

Reasons why cash flow into stocks is gradually drying up

* Ms. Tran Thi Khanh Hien - Director of MB Securities Analysis (MBS):

Liquidity has been low since mid-June, which is also the time to close the second quarter financial reports of listed companies as well as securities companies.

Part of the cash flow withdrawn at the end of the financial report may not have returned. In addition, some securities companies that lend outside also have to adjust their margins at this time to process the report.

Regarding market psychology, although the recently released macroeconomic data is quite positive, with GDP increasing unexpectedly, many investors are still waiting for the market to fall further to enter.

This period can be said to be increasing in doubt when some risk factors of exchange rate, foreign net selling or gradually increasing interest rates are dominating investors' psychology in the short term, making them cautious.

Many investors are asking: Is money being withdrawn from the market? Through discussions and observations with many securities companies, money has not been withdrawn from the market but is in "waiting" mode. Next week, more listed companies will announce their second quarter financial reports.

Usually good news comes out first, where profits are positive, favorable information will be announced early and vice versa.

The previous surge has also led some investors to question whether the market has topped out. However, we believe it has not reached its limit.

Just note that the recent surge in mid-cap stocks has pushed their valuation to 17.1 times P/E (valuation), about 17% higher than the VN-Index. Even mid-cap stocks are now trading at P/B (index for price comparison) equivalent to large-cap stocks.

Tech stocks' potential is already reflected in prices, investors note

* Mr. Huynh Hoang Phuong, financial expert, FIDT asset management consultant:

Recent cash flow has focused on technology and telecommunications groups, while only moderately in the financial group.

However, whether or not to join the technology industry at this time for future expectations, I will not prioritize. Like FPT, the stock is almost reflecting all of their stories. In the next 6 months, this group is no longer really attractive in terms of fundamentals.

Some sectors are of interest, such as banking. However, we need to see how the Q2 report is released. Asset quality will be an important factor in assessing the growth potential of this group.

Next, the retail and consumer sectors, data shows that they have not really recovered compared to their potential. However, the second half of the year is expected to improve. The salary increase from July 1st is a supporting factor for this sector.

Finally, in the real estate industry, new policies bring expectations that will remove bottlenecks for businesses in this industry, promoting recovery.

Technical perspective: selling pressure is present at the supply zone of 1.270-1.288

* Mr. Pham Quang Chuong, analyst at Phu Hung Securities (PHS):

VN-Index maintained green for most of the trading session, market breadth showed that the number of stocks losing points completely overwhelmed. Demand also found some mid-cap stocks in groups such as seaports, aviation, retail, and real estate.

Liquidity remained around the average level, showing investors' cautious sentiment. Foreign investors continued to maintain their net selling momentum. Technically, the VN-Index continued to have a weak increase.

Selling pressure is likely to be present in the supply zone of 1,270 - 1,288. The index may continue to fluctuate in this zone, expecting only a weak decrease with low volume to signal weak selling pressure.

The general strategy is to keep the weight at an average level and wait for more sessions with strong cash flow to increase further, prioritizing groups such as banking, real estate, retail, oil and gas, import and export, steel, shipping, and industrial parks.

Foreign investors withdraw nearly 54,000 billion VND from Vietnamese stocks

The decrease in liquidity may be due to domestic investors still waiting for appropriate disbursement. But the amount of foreign money withdrawn from the market is clearly visible.

According to MBS statistics, foreign investors have been net sellers for the past six months with a total value of VND53,600 billion. MBS experts believe that foreign investors' net selling of Vietnamese stocks may be the reason for the weakening of the Vietnamese Dong.

Source: https://tuoitre.vn/thanh-khoan-chung-khoan-binh-quan-thap-nhat-6-thang-qua-20240707211307718.htm