Name the "healthy" stocks

The Vietnamese stock market experienced a rather volatile trading week and broke its four-week streak of consecutive gains after retesting the old peak in March (1,280 - 1,295 points).

The weekend session pulled the market down more than 19 points, as the interbank interest rate for a term increased sharply and exceeded the 5% mark, reflecting that the liquidity in the system is no longer as abundant as in the previous period. In addition, the fact that the US recorded a higher-than-expected PMI index also made investors worry about the possibility of the Fed lowering interest rates this year, causing the USD index (DXY) to increase, putting pressure on the VND exchange rate.

At the end of the week, VN-Index decreased by 11.18 points, equivalent to 0.9% to 1,261.9 points. HNX was almost flat at 241.7 points and UPCoM increased by 1.4% to 94.4 points.

Last week, GAS increased by 4.4%; HVN increased by 12.6% and PLX increased by 8%, which were the main factors supporting the market. On the contrary, VCB decreased by 1.7%; VIC decreased by 4.1% and TCB decreased by 3.8%, putting pressure on the general index.

Liquidity continued to trend upward with transaction value on the three exchanges reaching VND27,670 billion/session, up 37.6% compared to last week.

Foreign investors net sold 5,352 billion VND on all 3 exchanges, of which net sold 3,871 billion VND on HoSE, net sold 33 billion VND on HNX and net sold 1,448 billion VND on UPCoM.

VN-Index performance last week (Source: TradingView).

According to Mr. Bui Van Huy - Director of DSC Securities Company, Ho Chi Minh City Branch, the market has increased by more than 100 points from the bottom and a 3-5% correction is normal. The move from the domestic investor group is more important now.

The nearest support level of VN-Index is the 1,250 point zone. The base case is that the market will accumulate in the 1,250 - 1,290 point zone, balancing before having further upward momentum. Stronger support in the worst case scenario is around 1,220 points.

According to this expert, the current market is quite active and money is coming in well. Cash flow can spread to different groups of stocks, as long as investors predict the right industry wave to seek profits.

Therefore, Mr. Huy suggests that investors should "put money" into stocks that maintain growth rates in revenue and profits or have escaped the bottom of business results.

First is the group of "healthy" stocks such as technology, retail, tourism and entertainment, telecommunications, and chemicals. Investors can continue to hold, but if they buy new ones, they need to pay attention to the accumulation zone and whether there is much room left.

Next are the stocks that are likely to improve, including oil and gas, securities, steel, and fertilizers. Cash flow can then circulate to the third layer, including real estate, construction, and materials. Banking stocks can pull the index up in the final beat. Penny stocks can make waves and become the fifth rotation layer.

"Each wave's rotation from the beginning to the end can last from several weeks to several months until the end of the wave. Investors can be flexible to take advantage of opportunities," Mr. Bui Van Huy recommended.

Foreign block transaction developments.

Mr. Dinh Quang Hinh - Head of Macro and Market Strategy Department, VNDIRECT Securities Company, acknowledged that short-term risks are increasing as the market receives unexpected information both domestically and internationally.

Specifically, US macro data released last week such as services PMI, manufacturing PMI, and higher-than-expected unemployment claims showed that the US economic growth outlook remains strong. This raises concerns that the Fed will continue to delay cutting its key interest rate.

Domestically, despite the State Bank's intervention efforts, the exchange rate pressure has not cooled down. In addition, the gold bar auction has sucked a large amount of liquidity from the market. This has caused the liquidity in the system to no longer be as abundant as before and the interbank overnight interest rate has exceeded the 5% threshold. Along with that, the State Bank also increased the OMO interest rate to 4.5%/year, an increase of 25 basis points compared to before.

The above information had an immediate impact on the stock market as this is a channel "sensitive" to interest rates.

Faced with emerging signs of risk, it is essential for investors to reassess the current state of their portfolios and prioritize risk management.

Accordingly, for traders who are using leverage (margin) or holding a high proportion of stocks, it is necessary to take advantage of technical recovery phases to reduce positions, reduce stock proportions to a safe level to manage portfolio risks.

For long-term investors, it is possible to continue holding stocks that have not reached the target price, but should not rush to buy but need to patiently observe supply and demand, market developments in the coming sessions, waiting for more attractive buying points to disburse. The nearest support level of VN-Index is the 1,250 point area and the further support level is the area around 1,220 points .

Source: https://www.nguoiduatin.vn/lang-kinh-chung-khoan-27-5-diem-ten-nhung-co-phieu-khoe-a665429.html