The stock market opened the trading session on March 5 quite positively when green color spread widely on the electronic board, helping VN-Index continue to move up close to the 1,850 point mark.
Securities stock groups continued to recover from the end of yesterday afternoon's session, with codes racing to widen the increase range. At the same time, banking, steel, and real estate groups also recovered positively, helping VN-Index maintain a fairly good upward momentum.
Although the key groups of banks and securities were somewhat exhausted towards the end of the morning session, the solid support from Vingroup's stocks helped VN-Index maintain a fairly good increase.
Closing the morning session on March 5, VN-Index increased by 18.77 points (+1.03%) to 1,837.04 points. Total trading volume reached 577.3 million units, worth 17,666 billion VND.
The VN30 group closed the session up 11.5 points, with 17 gainers and 13 losers. Among them, the main driver for the large-cap stock group and the whole market is VIC, closing the session this code increased by 6.9% to the ceiling price, while VPL increased by 2.1%, VHM increased by 1.9%. These 3 codes alone contributed 21 points to the overall index.
In the opposite direction, GVR decreased the most by 4.5%, the energy group pair GAS and PLX narrowed the amplitude significantly when closing the session down 2.3% and 1.9% respectively. However, the energy group is still in the top of the strongest decliners in the market. In addition to the above 2 codes, other stocks in the industry such as BSR closed this morning's session down 2.2%, notably PVD down 6%.
Other groups that have just increased sharply, such as fertilizers and seaports, have also reversed to adjust, such as DCM down 3%, DPM slightly down 0.5%, HAH down 2.8%, VSC down 1.2%, VOS down 4.3%...
Meanwhile, the main driving force from VIC helped the real estate stock group lead the market's upward momentum. In addition, some other codes in the industry recorded a positive trading session such as KDH up 4.4%, NLG up 2.5%, NVL up 2.7%...
Experts assess that the conflict in the Middle East is predicted to support oil and gas stocks, but the valuation of this group is no longer cheap, and investors are likely to fall into a state of "piping".
According to statistics from Thien Viet Securities (TVS), oil and gas stocks increased by 70.4% in the first two months of the year, becoming the industry with the best performance in the market. This increase maintains a large gap compared to other stock groups such as basic resources (22.7%), financial services (16.9%) or retail (9.2%)...
Therefore, the biggest risk for oil and gas stocks does not lie in the current oil price, but in the possibility that oil prices will not maintain the expected high level. In addition to macroeconomic factors, the specific nature of the oil and gas industry also hides latency.
Many oil and gas service businesses record revenue under long-term contracts, without immediate fluctuations according to spot oil prices. Therefore, when oil prices increase in the short term, actual profits may not increase correspondingly. If oil prices adjust before business results improve, investors will face "disillusioned expectations".
Another noteworthy point is the very clear cyclical nature of the industry. The market often overreacts in both directions. When oil prices increase, investors easily forget that this industry has experienced periods of deep decline, typically the oil price shock in 2014-2016 when global oversupply caused prices to plummet. Historical lessons show that the euphoric cycle is often not long-lasting.
In general, "spending money to surf the wave" in this period faces the biggest risk of the situation developing too quickly, the price increase/decrease circulation through stock groups may only be in 1-2 sessions, so the most appropriate tactic is "quick strike and short withdrawal" to avoid being stuck with high-priced goods in the account.
