Take advantage of the opportunity to "collect" good stocks

Last week, the stock market suffered 4 out of 5 sessions of decline, causing the VN-Index to be pulled back to the 1,250-point mark. Liquidity also disappeared, combined with the lack of leading stocks, leading to a sluggish market in general.

The codes that put pressure on the index were SSB down 15.3%, VIC down 3.9% and BID down 2.2%. On the contrary,FPT up 0.7%, TPB up 2.5% and SBT up 8.4% were the main factors supporting the market.

At the end of the week, VN-Index decreased by 22.25 points compared to the previous week, equivalent to 1.7% to 1,251.7 points, HNX-Index decreased by 0.9% to 232.4 points and UPCoM-Index decreased by 0.4% to 92.9 points.

Foreign investors net sold 1,132.9 billion VND on all 3 exchanges, of which net sold 1,122.2 billion VND on HoSE, net sold 17.2 billion VND on HNX and net bought 6.5 billion VND on UPCoM.

What is the market waiting for?

Assessing the market's sluggish performance last week, Mr. Dinh Quang Hinh - Head of Macroeconomics and Market Strategy Department, Analysis Department, VNDirect Securities Company, said that this reflects caution before important macro developments.

Including the upcoming Fed interest rate meeting taking place in the middle of next week with the forecast that the Fed will cut interest rates for the first time this year; the market is waiting to see the reaction of the State Bank of Vietnam after the Fed's interest rate cut; the biggest typhoon Yagi in decades landed in Northern Vietnam causing disruption to the production and business activities of a number of enterprises.

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

Sharing the same view, Ms. Nguyen Thi My Lien - Head of Analysis Department of Phu Hung Securities Company (PHS) commented that next week, the market is believing in the scenario that the Fed will cut interest rates for the first time in two years, by 25 basis points.

There are a number of factors that could prompt the Fed to take a more aggressive approach, such as cutting rates by 50 basis points. However, factors related to the US presidential election are very important, the Fed will usually limit its rate easing moves during this sensitive period.

Regarding the Vietnamese economy , according to newly released data in August, inflation is at 4%. Some positive signs are the decrease in gasoline prices. Experts from PHS predict that inflation will stabilize below 4% by the end of the year, around 3.6%, which is a supporting factor for the market.

Stocks are at the foot of a new wave

Experts from VNDirect maintain a positive view on the prospects of the Vietnamese stock market in the final period of the year and the scenario of VN-Index surpassing the 1,300 point mark this year is completely feasible.

Supporting factors such as the Fed's expected reduction of the operating interest rate by about 0.75% in the last months of the year; exchange rate pressure and cooling inflation help the State Bank of Vietnam to have conditions to shift its target to prioritizing economic growth, increasing money supply and maintaining low interest rates; business results of listed enterprises continue to improve; new progress in the story of upgrading the market.

At the same time, past experience shows that "market tops always appear during active trading periods and market bottoms are formed when market liquidity is quiet".

Mr. Dinh Quang Hinh - Expert of VNDirect Securities Company

Market tops always appear during active trading periods and market bottoms form when market liquidity is quiet.

Therefore, Mr. Hinh believes that VN-Index is in the accumulation phase for the year-end uptrend and investors should take advantage of this phase to increase the proportion of stocks around the 1,250-point support zone of VN-Index.

Investors prioritize industries with positive growth stories at the end of the year such as banking, securities, import and export (textiles, seafood, wooden products) and industrial park real estate.

Experts from PHS also commented that the stock market has been very differentiated in recent months, between industry groups, even between stocks in the same industry. For example, banks, the group focusing on corporate loans has recovered better than the group focusing on consumer and retail loans.

Therefore, investors should pay attention to industry groups with attractive valuations, such as banking.

According to Ms. Lien, with an optimistic scenario when interest rates decrease in the coming time, the financial group including banks and securities will have favorable conditions. Notably, the securities industry also has the factor of upgrading, so leading enterprises in the industry will be safer investment opportunities.

Source: https://www.nguoiduatin.vn/lang-kinh-chung-khoan-16-9-tan-dung-thoi-co-de-gom-co-phieu-tot-204240915161440492.htm