Continuing the upward momentum, the VN-Index yesterday (October 18) quickly surpassed the 1,290 point mark after the market opened with the support of the banking group. However, near the end of the session, the market witnessed differentiation and then a decrease in height.
At the end of the trading session on October 18, VN-Index decreased by 1.06 points, equivalent to 0.08% to 1,285.46 points. The entire floor had 157 stocks increasing, 211 stocks decreasing, and 72 stocks remaining unchanged. HNX-Index decreased by 0.91 points to 229.21 points. The entire floor had 57 stocks increasing, 83 stocks decreasing, and 71 stocks remaining unchanged. UPCoM-Index remained unchanged at 92.7 points.
The VN30 group of stocks has been recorded in recent times. This situation has also appeared in many trading sessions since August 2024 with trading days of the VN30 group accounting for more than 50% of the value of HOSE, even reaching over 60% at times.
This shows a trend of cash flow "skewed" to large stocks in the 6th time the VN-Index approached the 1,300-point mark in 2024. Compared to previous approaches to the 1,300-point mark, the concentration on bluechips is the highest in the past 3 years.
From a market perspective, the stock market has been stagnant for quite a while now as supporting information is not strong enough, while businesses have not revealed much about their most recent quarterly business results. In addition to Q3 business results, investors expect information about Q4 prospects of businesses, but whether that will be the main driving force of the market in the coming time or not is still an open question. The VN-Index has stagnated before the time when businesses are preparing to announce their Q3/2024 business results, but this reporting season could be the main factor creating a boost for the market.
Dr. Nguyen Duy Phuong - Investment Director of DG Capital - said that to conquer the 1,300-point mark, efforts from large stocks as well as the banking group are still needed because when the trend is not clear, safe opportunities will mainly appear in the large-cap group instead of stocks with strong fluctuations. In addition, it is necessary to note that in the third quarter of 2024 financial reporting season, the business results factor will also affect investment decisions in the coming time.
According to experts from Kafi Securities Company, in the short term, if the business results of many enterprises in the third quarter of 2024 are positive, it could be a factor leading to the market's increase. Some sectors worth paying attention to are banking, real estate, and consumer goods. In particular, the retail sector witnessed an impressive recovery in terms of profits in the first half of the year, and the market may expect this achievement to be maintained. However, the market is likely to have a clear differentiation and stocks with outstanding results or long-term growth potential will attract cash flow. Differentiation between stocks in each sector may also occur, as the current economic recovery context is the basis for strong businesses to accelerate compared to competitors in the same industry.
"In general, the stock market in the final period of 2024 can be viewed in a positive direction. However, the current strategy needs to focus on selecting and evaluating the potential of businesses, because the possibility of cash flow differentiation according to business results of businesses is at a high level" - experts from Kafi Securities Company commented.
