There needs to be adjustments to re-examine the force.

Stock Market Perspective Week 13-17/5: Need to have adjustments to re-examine the force

Buying positions when VN-Index approaches the short-term resistance zone of 1,250 - 1,260 points should be taken with some caution.

At the end of the week, VN-Index increased 1.94% compared to the previous week to 1,244.70 points.

During the week, liquidity on HoSE reached VND 98,720 billion, a good improvement compared to previous weeks but below average. The market was strongly differentiated, specifically, large-cap stocks recorded strong differentiation and put pressure on the general market index, while cash flow continued to record positive rotation and seek investment opportunities in stocks with separate support stories, typically information technology, securities, oil and gas... The good recovery level was concentrated in stocks/groups of stocks with positive business results in the first quarter of 2024, with many stocks surpassing and approaching the old price peak.

Foreign investors continued to net sell strongly with a value of VND 3,139.47 billion on HoSE, focusing on VHM, while net buying well on HNX with a value of VND 222.66 billion.

Agriseco Securities Company reported that foreign investors have net sold more than VND3,000 billion and since the beginning of 2024, foreign investors have net sold more than VND20,000 billion on all three exchanges. This shows that foreign investors' net selling has lasted since the beginning of 2024 and even since 2023. Foreign capital is also strongly withdrawing from most ETF funds with more than VND8,000 billion from the beginning of 2024 to the end of April. However, the VN-Index still has a positive performance when it increased by about 10% since the beginning of the year with the driving force coming from domestic capital flows.

Agriseco believes that with the current rapid increase in liquidity and the development of domestic individual and institutional investors, foreign investors' transactions no longer have as much impact on the market as before. Investors should not be too worried about foreign net selling, but instead focus on businesses and industries with growing profits and great potential for price increases in the near future.

According to Agriesco Securities Company, the market is still maintaining an upward trend in the short term, and the fluctuations that occur will be an opportunity for investors to increase their stock holdings. Leading stocks, blue chips with solid fundamentals and many competitive advantages in business operations are preferred by Agriseco.

In fact, the VN30 group has also increased by nearly 14% since the beginning of the year, higher than the increase of about 10% of the VN-Index and outperforming the performance of the VN-Mid or VN-Small groups in the same period.

In particular, industry groups with investment stories or positive business growth prospects will attract cash flow, such as retail, steel, and information technology.

Specifically, Agriseco experts shared that for the retail industry, total retail sales of goods and consumer service revenue still maintained growth, and retail businesses' profits grew strongly above the low base level of the same period. According to FiinTrade data, the retail group's Q1/2024 net profit increased by more than 400% over the same period and could remain positive in this Q2.

The steel industry is also positively assessed in the second quarter of 2024 thanks to strong output recovery in the context of the real estate market showing signs of warming up along with increased demand for public investment.

Information technology industry because this is an industry that will still grow rapidly and sustainably for many years to come with the trend of digital transformation and the AI wave that is developing strongly.

SSI Securities Consultant, Mr. Hoang Tuan, said that the market has continuously recovered since the bottom of 1,160 points (nearly +80 points) in the absence of corrections to re-test the force. Therefore, buying positions when VN-Index approaches the short-term resistance zone of 1,250 - 1,260 points should be somewhat cautious.

Accordingly, investors with a short-term bottom-fishing strategy should take advantage of profit-taking during market uptrends. Investors with a high proportion (over 50% stocks/NAV) should restructure their portfolio to a safe level. Investors with a reasonable proportion should patiently wait for an adjustment to the potential range of 1,210 - 1,220 points to disburse additional funds for stocks that maintain good strength.

Mr. Tuan recommends that investors can monitor bank stocks including TCB, ACB ; securities stocks including CTS, HCM and industrial park real estate stocks GVR.

Source: https://baodautu.vn/goc-nhin-ttck-tuan-13-175-can-co-cac-nhip-dieu-chinh-kiem-dinh-lai-luc-luong-d214980.html