Selling pressure dominated the new weekly trading session of the stock market after Typhoon Yagi. The number of sectors that lost points was overwhelming, with 17/21 sectors decreasing in price. However, selling pressure has not yet occurred and liquidity has decreased sharply compared to before, the matched volume on HSX decreased (-26.6%) compared to the average of 20 sessions.
Along with the sharp decline in market liquidity, foreign investors also traded less actively in the session on September 9 and returned to net selling nearly 500 billion VND, focusing on bluechip stocks.
Yesterday's decline did not have enough momentum to reverse the previously formed uptrend and was more of a short-term correction to retest the support level of 1,253-1,255 points.
According to experts from AIS Securities Company, negative developments in international financial markets continue to negatively impact the overall market sentiment. The VN-Index has had a second consecutive session testing the support zone around the 1,260-point mark. There may be a recovery this week, but it needs to surpass the 1,275-point mark and liquidity must improve for this short-term decline to have a basis to end.
Vietcombank Securities Company (VCBS) expressed its opinion that although the market is still experiencing fluctuations, the presence of demand shows that investors' sentiment is not too negative and expectations for a recovery are still there. VCBS recommends that investors continue to maintain their portfolio weight with stocks in the retail, securities, and banking sectors and consider disbursing stocks in the above sectors at discounted prices.
Experts from Asean Securities Company commented that investors continue to be cautious, as evidenced by selling during slight increases and not daring to buy strongly when the market falls, causing liquidity to stop at a low level. The VN-Index is fluctuating around an important technical support level, if it can maintain this level and liquidity increases again.
Conversely, if the support level is broken with large liquidity, the market may continue to correct deeper to the next support levels at 1,220-1,230 points.
Regarding the general market context, September 2024 will be a “pivotal” month for the Vietnamese stock market before macroeconomic data and corporate profits in the third quarter are announced. Cash flow is expected to be differentiated based on business prospects and individual investment stories of each industry group.
In the context of the economy recovering positively from the beginning of 2024 and continuing to be expected to grow in the last months of the year, many industry groups will have good room for profit growth, bringing positive prospects for stock prices.
Accordingly, in September and the last months of 2024, investors may be interested in groups of stocks that record strong growth in business results in the third and fourth quarters compared to the same period in 2023, such as the export group (seafood, textiles), and the retail group.
Stocks with low valuations compared to their profit growth potential such as banks and steel are also suitable choices in the last months of 2024. The driving force for bank stocks will come from increased credit demand as the economy recovers. Recently, the State Bank has allowed credit room to be expanded for banks with credit growth rates in 2024 reaching 80% of the target assigned at the beginning of the year. This will create momentum for credit growth and support the price movements of the "king" stocks.
