Potential buying points appear for stock investors

After the adjustment period, the stock market yesterday had a positive trading session when blue chips reversed, helping the VN-Index increase to 1,280 points. Meanwhile, many industry groups also showed signs of improvement, such as oil and gas, insurance, and electricity codes. The total trading volume reached more than 968.1 million units, worth VND23,314.1 billion, down 14% in volume and 19% in value compared to yesterday's session. Negotiated transactions contributed more than 134.4 million units, worth VND2,426.6 billion.

Notably, in addition to the vibrant domestic demand that helped the market "turn around" and skyrocket in the trading session on May 23, foreign investors also switched to a positive net buying status, although still limited with a value of just over VND60 billion.

In general, the market can be seen as a predictable correction in the second quarter of 2024 after a sharp increase of 13.6%. In addition, geopolitical instability in the world and the timing of the Fed's interest rate cut, which is likely to extend into the third or fourth quarter, are also factors that have had a certain impact on the market in the past and in the future. However, according to the general assessment of experts, there is optimism and the market is unlikely to decline deeply in the second quarter thanks to supporting factors from the macro economy.

In addition, the positive business results of many enterprises in the first quarter of 2024 have helped P/E valuations become more attractive, while the outlook for full-year profits has recovered strongly. Accordingly, if the VN-Index corrects to support zones, it will open up new buying opportunities and increase the proportion of stocks.

Experts from KBSV Securities Company believe that, with the support and guidance of pillar stocks, VN-Index quickly had a relatively positive recovery session with the creation of a solid-bodied bullish candle covering all previous bearish candles, making the market state less negative. Although the risk that VN-Index will face pressure to fluctuate again around the old short-term peak still exists, the active bottom-fishing cash flow is expected to continue to preserve the index's recovery trend.

In the remaining quarters of 2024, Rong Viet Securities Company expects the double-digit profit growth rate to continue thanks to the prospects of the banking and technology industries; the recovery of profit margins of many industry groups, especially tourism and entertainment, with the contribution of aviation stocks; the low base level of the same period last year. In the short term, the stock market in May is not expected to have much supporting information, so the VN-Index may fluctuate "tug of war" within the same range as in April.

VN-Index may fluctuate between 1,165 and 1,280 points in May. However, if the market sentiment is positive, the index could reach its peak in 2024. Opportunities to restructure portfolios and reduce portfolio capitalization always appear at market lows and highs. Market downturns in May 2024 will be potential buying points for both medium- and long-term investors and investors who prefer trading, experts from Rong Viet Securities Company said.

Source: https://laodong.vn/kinh-doanh/xuat-hien-diem-mua-tiem-nang-cho-nha-dau-tu-chung-khoan-1343960.ldo