The stock market fluctuated last week as liquidity remained weak. Starting with a sharp decline at the beginning of the week, the index quickly recovered quite well when the US presidential election reached its final results.
However, this excitement could not last long when the current cash flow was too weak. This has caused a significant obstacle to the market's recovery. In addition, the trading volume is still below the 20-day average, showing that investors' cautious sentiment is still present. The VN-Index corrected again in the last two sessions of the week, ending the week at 1,252.56 points.
Foreign investors have shown no signs of cooling down, continuing to push up selling and net selling more than VND1,200 billion in the session on November 8. This group sold the most CMG shares with a value of VND172.74 billion, equivalent to a net selling volume of 3.18 million units. However, VHM is still the leading stock in the portfolio with strong net selling volume, reaching 3.93 million units, with a corresponding net selling value of VND159.81 billion.
Statistics last week showed that foreign investors continued to net sell with a value of more than VND3,600 billion on both exchanges this week. Of which, foreign investors net sold more than VND3,400 billion on the HOSE and net sold more than VND151 billion on the HNX.
Most sectors ended the week in the red. Of which, the real estate sector was the biggest factor weighing on the index, down 1.42%. Major stocks in the sector mostly fell sharply.
According to analysts from SSI Securities Company, the market is likely to remain volatile, due to the influence of external factors such as the US Presidential election or the US Federal Reserve (Fed) announcing the second interest rate cut this year, with a cut of 25 basis points in the context of cooling inflation. Domestically, the 8th National Assembly session will discuss laws and policies in the real estate sector or the possibility of intervention by the State Bank to reduce exchange rate pressure.
However, some key factors can be considered as positive factors supporting the market in the coming period. In particular, the estimated one-year valuation of VN-Index decreased slightly to 11.9 times at the end of October from 12.1 times at the beginning of the month. This shows that the market is under downward pressure and has not reflected many positive changes in the results of Q3/2024.
Third quarter profit growth continued to expand across many sectors, with many sectors achieving high growth rates of over 30%. In addition, Circular 68 and amendments to the Securities Law have raised expectations that foreign investment funds may consider increasing their proportion in Vietnam.
Overall, the market may be volatile in the short term, but this is also an opportunity to buy potential stocks at reasonable prices to build a long-term investment portfolio. However, investors should also diversify their portfolios to limit the impact of unpredictable fluctuations. Along with policy fluctuations from the US, domestic interest rates and exchange rate fluctuations are two macro factors that need to be closely monitored in the risk management process.
