The Vietnamese stock market experienced a "sad" last trading week of the second quarter when the VN-Index continuously adjusted and broke the 1,250 point mark.
Some information that affected stocks last week such as Foxconn Group announced the implementation of the FCPV Foxconn Bac Ninh project in the Nam Son - Hap Linh industrial park helped KBC stock increase. On June 25, VRE hit the ceiling when it planned to open shopping malls in several provinces across the country, HAH also increased by 6.9% thanks to the benefit from high transportation costs.
At the end of the week, VN-Index decreased by 36.7 points compared to the previous week, equivalent to 2.86% to 1,245.32 points. HNX decreased by 2.77% to 237.59 points.
Last week, VRE increased by 2.3%, BVH increased by 1.9% and EIB increased by 1.9%, which were the main stocks supporting the market. On the contrary, BID decreased by 5.2%, FPT decreased by 4.1% and TCB decreased by 4.7%, which were factors putting pressure on the general index.
Average trading volume decreased by 5.6% to VND22,015 billion/session. Foreign investors continued to net sell VND4,449.7 billion on all three exchanges, down slightly by 8.9% compared to the previous week.
Assessing the trading performance last week, Mr. Nguyen Anh Khoa, Head of Research Department of Agriseco Securities Company, said that weak demand due to lack of supporting information while short-term macroeconomic factors negatively affected psychology were the main reasons for the market's decline and inability to rebound.
Besides, after 2 months of continuous increase and reaching the mid-term peak, the market also needs a correction so that new money can enter the market at a more reasonable price.
The possibility of the market having a strong drop is not high when demand can increase significantly at the support zone around 1,225 - 1,230 points, helping VN-Index maintain its uptrend in the medium term. In case the market has a strong drop with high liquidity, the further support zone around 1,180 - 1,190 points, corresponding to MA200, will be a reliable support point for the index.
VN-Index performance last week (Source: TradingView).
According to Mr. Dinh Quang Hinh - Head of Macro and Market Strategy Department of VNDIRECT Securities Company, after a week of adjustment and the VN-Index losing the psychological mark of 1,250 points, the market received some supportive information at the end of the week.
Specifically, on the evening of June 28 (Vietnam time), the US released the latest data on personal consumption expenditures (PCE), the FED's preferred inflation measure. The total PCE was flat in May and increased 2.6% compared to the same period last year, both close to market forecasts.
The newly released US inflation data is the market's expected information, reinforcing expectations that the Fed may cut the operating interest rate in the second half of 2024.
Domestically, on Saturday morning (June 29), the General Statistics Office announced positive macroeconomic data for the second quarter of 2024. Specifically, GDP in the second quarter grew by 6.93% year-on-year, exceeding market forecasts. With this positive result, Vietnam is fully capable of reaching the upper limit of this year's growth target of 6.5%.
However, there is still some pressure on inflation as the consumer price index (CPI) in June increased by 0.17% compared to the previous month and increased by 4.34% compared to the same period last year, only slightly down compared to the previous month and still at a fairly high level. Inflation developments still need to be closely monitored in the coming months.
In general, the newly released supportive information can be a "spiritual medicine" for investors after the recent strong correction.
Stop selling
Giving advice to investors in the new trading week, Mr. Dinh Quang Hinh noted that the first session of next week will be a quite important session when the VN-Index confirms whether it has really lost the psychological mark of 1,250 points or not.
At the same time, the market is entering the second quarter earnings season with many forecasts showing that the profit growth momentum will continue. Therefore, investors should stop selling in this area because this expert believes that holding stocks in this area will still bring quite positive profits in the next 3 months.
However, investors need to be ready to disburse aggressively if the VN-Index corrects to the strong support zone of 1,200 - 1,220 points, prioritizing industries that have not increased strongly in recent times such as banking, real estate, securities, electricity and export groups.
Sharing the same view, Mr. Nguyen Anh Khoa said that after the recent market correction, many groups of stocks have returned to more attractive price levels. The rapid shake-off and decline to support levels will open up many opportunities and trigger cash flow to return to the market.
Mr. Khoa advised investors to prioritize restructuring their portfolios, reducing the proportion of stocks that have had high price increases in recent times and stocks with speculative tendencies.
Regarding new disbursements, investors can wait for disbursements in leading stocks when the stock price falls to the support zone. In addition, investors may be interested in some industry groups with positive business results before the announcement of the 2024 semi-annual financial report, such as retail, steel, export, and information technology .
Source: https://www.nguoiduatin.vn/lang-kinh-chung-khoan-1-7-xuat-hien-lieu-thuoc-tinh-than-a670872.html
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