Cautious cash flow, large-cap groups pull VN-Index up in the last week of November

The Vietnamese stock market recorded positive developments last week when the VN-Index rebounded strongly from the accumulation zone of 1,640 - 1,660 points, approaching the resistance level of 1,700 points. The main driving force came from large-cap stocks, notably the Vingroup duo (VIC, VPL) with the support of VNM, GEE and VJC. At the end of the week, the VN-Index increased by 36.06 points, equivalent to 2.18%, closing at 1,690.99 points.

Foreign investors sharply reduced net selling, VN-Index approached the 1,700 point mark

Despite the increase in the index, the liquidity of the whole market continued to remain low. The trading volume for the whole week reached 746 million shares, down 2.02%; the corresponding value reached 22,882 billion VND, down 5.56% compared to the previous week. This development shows the cautious sentiment of investors when the interest rate level is on an upward trend, causing the liquidity of the HoSE floor to be 43.9% lower than the average level of the last 20 weeks.

In terms of industry groups, Real Estate led the increase with an increase of 8.11%, followed by Food and Beverages with an increase of 1.42% and Oil and Gas with an increase of 1.23%. On the contrary, Steel decreased by 3.05%, Chemicals decreased by 2.67% and Insurance decreased by 2.49%. The whole market recorded 15/21 industry groups decreasing in points, reflecting the phenomenon of "green skin, red heart" even though the general index increased.

A notable point is that cash flow continues to focus on large-cap stocks, while individual investors net sold more than VND2,661 billion, the second consecutive week of capital withdrawal. Vin stocks alone contributed nearly 40 points to the increase of VN-Index. Some individual codes such as VJC, VNM and GEE still maintain positive attraction, but the market in general is still in a state of accumulation.

Mr. Hoang Xuan Chien - Business Development Director of the investment consulting division of VPS Securities commented that the increase last week was mainly based on the pulling force of the Vingroup group, while most stocks in the market continued to fluctuate within a narrow range. Low liquidity is a factor showing the cautiousness of cash flow, when investors still prioritize observation instead of expanding the proportion.

More positive developments came from foreign investors as selling pressure was significantly reduced. In the week, this group net sold 751.7 billion VND in the whole market, down 66% compared to the previous week; at the same time, net bought 10.9 million shares, in contrast to the net selling of 82.7 million units of the previous week.

On HoSE, foreign investors net bought 13.74 million shares but still net sold VND583 billion. Trading activities were quite balanced with 3 net selling sessions and 2 net buying sessions, especially Wednesday and Friday sessions recorded a spike in net buying value.

At HNX, foreign investors net sold 29.4 billion VND; while on UPCoM, selling pressure remained throughout the week with a total value of 139.3 billion VND, although it decreased by more than 63% compared to the previous week.

By code, VIC led the group of net sold with 616 billion VND, followed by VIX (574 billion VND), VCB (448 billion VND) and VJC (386 billion VND). Many other large stocks such as VRE, MBB, VCI, MCH, MWG andACB were also under pressure to withdraw capital.

On the buying side, FPT led with a value of 646 billion VND, followed by VPB (467 billion VND), POW (361 billion VND) and VNM (357 billion VND). Foreign money also found its way to the finance - banking group such asSHB , HDB, along with some technology and consumer stocks such as TCX, DGW and MSN.

Securities companies assess that the market is in the accumulation phase, in line with the strategy of maintaining the portfolio and increasing the proportion when there is a slight adjustment. According to recommendations, investors should limit strong disbursements, prioritize stocks with good fundamentals, supported by cash flow and avoid chasing purchases.

Mr. Hoang Xuan Chien forecasts that VN-Index may continue to differentiate and accumulate around the 1,700-point threshold. If the Real Estate or Oil and Gas groups maintain demand, the index may surpass 1,700 points to head towards the 1,750-point zone. Conversely, if profit-taking pressure increases, the market may return to test the 1,640-1,650-point zone.

In the context of cautious cash flow, the strategy of disbursing in parts, maintaining a portion of cash and selecting prospective industry groups is considered suitable for the current period.

Source: https://thoibaonganhang.vn/dong-tien-than-trong-nhom-von-hoa-lon-keo-vn-index-di-len-trong-tuan-cuoi-thang-11-174392.html