(NLDO) - Although stocks are continuously falling, experts say that we can consider buying good stocks to accumulate.
The sharp decline in two consecutive sessions at the end of the week caused the VN-Index to close at 1,218.57 points, falling to its lowest level in more than 4 months. Many investors are no longer patient with the stock market, starting to receive margin calls (requests to deposit more margin money) or have to cut losses, sell off stocks... However, many experts believe that we should stop selling off and be more patient with the market at the moment.
Mr. Dinh Quang Hinh, Head of Macro and Market Strategy Department, VNDIRECT Securities Company:
Short-term risks remain high
The market continued to experience a week of adjustment as the pressure on the USD/VND exchange rate and interbank interest rates showed no signs of cooling down. The dollar index (DXY) continued to maintain its upward momentum last week as expectations of the US Federal Reserve (FED) cutting interest rates at its December meeting decreased following information on the US CPI index; the recent comments by the FED Chairman about not needing to rush to lower interest rates. The increase in DXY and US government bond yields put pressure on the USD/VND exchange rate.
The central exchange rate has been continuously adjusted upward in the past week and the interbank exchange rate has nearly returned to its mid-year peak, and the interbank interest rate has increased again to over 5%, negatively affecting investor sentiment and the performance of banking, securities, and steel stocks.
Sharp drop at the end of the week caused VN-Index to fall to its lowest level in more than 4 months
Foreign investors' net selling momentum focused on large-cap stocks also increased pressure on stock indices. Investors should prioritize portfolio risk management at this time. Investors holding a high proportion of stock portfolios or using margin leverage should take advantage of technical recoveries to reduce their proportions. Investors with low proportions or short-term trading should limit "bottom fishing" when the market has not confirmed a reversal point.
Economist , Dr. Dinh The Hien:
Opportunity to buy and accumulate stocks
There is a paradox in the stock market, when VN-Index is close to 1,300 points, many opinions call for investors to buy stocks to hold. Meanwhile, the 1,300 point area is the peak of the year and has increased about 14-15% compared to the beginning of the year - which is a risky area.
On the contrary, at present, when VN-Index has fallen deeply to near 1,220 points, investors are worried about selling stocks, instead of buying and holding. So this investment strategy is not necessarily reasonable.
At this time, investors should set reasonable goals when buying and holding stocks in the stock market. If expectations are too high, it will be easy to fomo (buying after buying) when the VN-Index rises too high, or sell off because of anxiety when the market drops sharply. The current price range of the VN-Index is an opportunity to buy and hold for a long-term vision, instead of abandoning and switching to buying gold...
Mr. Truong Hien Phuong, Senior Director, KIS Vietnam Securities Company:
Good stocks will recover quickly when VN-Index increases again
After businesses announced their Q3/2024 business results, the market fell into an information vacuum. Demand was lower than the selling pressure of stocks, causing the market to fall sharply. Meanwhile, the rapid increase and decrease in gold prices, with strong fluctuations, also attracted the attention of investors.
The real estate market also shows signs of warming up, local fever in some localities also absorbs cash flow from stocks. The USD/VND exchange rate increases rapidly and the continuous net selling of foreign investors also affects investor sentiment. Because of the low liquidity of the market, each day, foreign investors net sell several hundred billion VND, even thousands of billion VND, creating great pressure on investor sentiment.
Foreign investors have been net sellers recently, each session worth hundreds of billions of dong.
Investors should be calm and should be called more patient, when the nature of the stock market is sensitive to all kinds of information and sometimes it is affected by some decisions of large investors. The market outlook is still positive as the business results report for the fourth quarter of 2024 is positive; the Vietnamese stock market will be officially upgraded in 2025, specifically from the first quarter after attracting foreign capital back; the FED continues to reduce interest rates...
Technically, the stock price has entered the oversold zone, many stock levels have reached a reasonable level to buy and hold, so selling off at this time is not reasonable. If investors are holding cash, they can wait for the market to decline deeply and strongly to gradually buy good stocks; or restructure their portfolio appropriately. Because when the market recovers, good stocks will increase faster.
Source: https://nld.com.vn/chung-khoan-ve-day-4-thang-chuyen-gia-noi-binh-tinh-kien-nhan-hon-196241116144633836.htm
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