The stock market added another exciting session with soaring liquidity. Cash flow poured into many groups of stocks, including real estate stocks and construction materials. Steel stocks, including Hoa Phat Group (HPG) of billionaire Tran Dinh Long, also performed impressively.
At the time near the end of the order-matching session on the afternoon of June 7 (nearly 6:14), a large amount of Novaland (NVL) shares were bought out, pulling the price to the ceiling.
By the end of the afternoon session, more than 52,8 million Novaland shares were matched. At the close, NVL increased by 950 dong to 14.550 dong/share.
PDR code of Phat Dat Real Estate also increased to the ceiling, from before with nearly 22,3 million units transferred. PDR increased by 1.000 VND to 15.950 VND/share.
At the end of the trading session on June 7 (6:14), both stocks increased by their full range. The selling volume in the periodic order matching session at the end of the session (ATC) was not much because there were very few sellers.
While the overbought at ceiling price and ATC price for shares of Novaland and Phat Dat Real Estate amounted to millions of units.
Closing session 7/6, VN-Index had another gaining session, with 1 points to 1,23 points, although the pressure of profit-taking was quite strong after the price of many stock groups increased strongly in the past 1.109-1 weeks. Liquidity on HOSE reached more than 2 million units, worth more than 995 billion dong.
In the group of pillar stocks (VN30), the market recorded a breakthrough of HPG (Hoa Phat). This stock increased by 850 VND to 22.600 VND/share – a new high since October 10. HPG witnessed nearly 2022 million shares traded in session 55,5/7
Masan (MSN) chaired by Mr. Nguyen Dang Quang also increased sharply by 1.900 dong to 75.500 dong/share.
Steel stocks boomed after the news that domestic demand recovered. Other steel codes like Nam Kim (NKG), Hoa Sen (HSG), POM, TLH, TIS… all gained strongly, with explosive liquidity.
Thus, after real estate, steel group started to increase in recent sessions. POM stock even increased more than 50% after only about 2 weeks.
On June 6, Hoa Phat Group said that sales of steel products (construction steel, hot rolled coil and billet) in May increased by 6% compared to April. This is also the highest steel consumption of this group since the beginning of the year.
Recently, Hoa Phat has reopened some blast furnaces (closed at the end of last year). Meanwhile, Pomina also has plans to reopen blast furnaces. In the world, steel prices are also increasing slightly.
Explaining the phenomenon of many stock groups rebounding, Mr. Nguyen Hung (an investor in Hanoi) said that the cash flow seems to be pouring in to catch the bottom soon when the stock price is still low. A series of policies to support the economy have been introduced and may have a positive impact on businesses in the next few months.
Mr. Hung also said that interest rates have decreased in many banks. At this early stage, the absorption capacity of enterprises is still low. Credit growth is at a very low level. Thus, the smart currency can choose a profitable destination in the short term.
Many experts are cautious with the market. Mr. Bui Van Huy, Director of DSC Securities Joint Stock Company, Ho Chi Minh City branch, said that "everything is still normal", maybe FOMO (fear of missing out) wave, fear of losing opportunities.
Mr. Vicente Nguyen, Investment Director of AFC Vietnam Fund said that many stocks gained strongly but were in fact still in a state of "weakness". As NVL still lost 70-80% from the peak.
Experts estimate that it is likely that some stocks will be difficult to return to the old level after the events, like the case of Hoang Anh Gia Lai (HAG) of Mr. Doan Nguyen Duc (HAG).
With real estate, this possibility is even more difficult. In fact, during the real estate crisis in 2012, many codes such as QCG, SCR... have not yet "returned to shore".
According to VNDirect, it is too early to assess whether the real estate market will soon "defrost" when the actual effectiveness of policy implementation is still open and many bottlenecks have not been completely resolved.
The weak demand of the domestic civil construction sector will have a significant impact on the demand for construction materials. It is forecast that total domestic steel demand will still grow in negative single digits in 2023.
Even with Hoa Phat, the public investment push will not be as expected.
As for VCBS Securities, the proportion of steel consumption in public investment is insignificant, only 10%-15%. Currently, the speed of disbursement of public investment capital is still quite slow.
