The stock market maintained its upward momentum last week, but liquidity dropped sharply, with the phenomenon of "green skin, red heart" occurring frequently in sessions.The increase was mainly contributed by large weighted codes such as Vingroup, technology or some banking stocks.
At the end of the trading week, the VN-Index increased by 17.79 points (+1.40%), to 1,288.39 points.The HNX-Index decreased by 1.3 points (-0.56%), to 231.37 points.Meanwhile, liquidity on both exchanges this week dropped sharply when the matched volume decreased by more than 26% on the HOSE and more than 28% on the HNX.Last week, the most active industry group, contributing the most to the market's increase, was Vingroup stocks with codes VHM (+5.06%), VIC (+1.95%), VRE (+3.83%) ...
Foreign investors returned to net selling yesterday with a sudden selling force, this time more than 785 billion VND.The stock that was sold the most was VHM with a selling value of up to 588 billion VND, the most in the past 2 months.On the buying side, foreign investors continued to net buy the top stock MSN, reaching 177 billion VND.Data shows that in the last 3 sessions, this stock was actively bought and sold by foreign "sharks".
Analysts still believe that the stock market will enter October with many positive news.Most notably, the Fed cut the operating interest rate by 50 basis points in September and is forecast to continue cutting at least another 25 basis points in the meeting in November.
Domestically, Typhoon Yagi caused great damage, but Vietnam's GDP in the third quarter still grew impressively by 7.4% over the same period.The results were mainly based on strong supporting factors such as social investment continued to grow steadily, including increased public investment, positive FDI, strong recovery in import and export, support measures from the Government such as flexible monetary policy, measures to support businesses and recover domestic consumption...At the end of the third quarter of 2024, credit grew by 9% compared to the beginning of the year, with a high possibility of reaching the growth target of 15% for the whole year of 2024.
Experts from ABS Securities Company believe that the focus of the stock market in October will revolve around two major issues.First, the laws expected to be passed at the 8th session of the 15th National Assembly.These include important laws such as the Law on Value Added Tax, the Law on Electricity, the Law on Corporate Income Tax, etc. The high-speed railway project with an estimated budget of 67 billion USD may also be passed at this session, which will be a driving force for public investment in 2025.Second, the prospects for the third quarter business results of listed companies.
ABS estimates that the after-tax profit of research enterprises could increase by 20.6% year-on-year in the second half of the year, higher than the 5.8% year-on-year increase achieved in the first half of 2024.Industries expected to have positive profit growth in the third quarter of 2024 include banking, securities, oil and gas, chemicals - fertilizers, retail, shipping, IT and telecommunications, garments, food, etc. In terms of valuation, the P/E of the VN-Index increased slightly from 14.01x at the end of August to 14.05x at the end of September, lower than the average of 14.07x of this index in the past year.The expected P/E for the whole year of 2024 is lower because the business results of the whole market are forecast to continue to recover in the second half of the year.
Large-cap stocks in VN30 are currently valued at P/E of 13.0x, much lower than mid- and small-cap stocks in VNMID (17.04x) and VNSML (15.49x).With the above analysis, ABS believes that the stock market will continue to move in the range of 1,305 - 1,185 points and has expectations of growth potential at the end of the year.
