The excitement after the rally on the day of the US presidential election results quickly passed, the stock market returned to a cautious trading state, weak cash flow and caused the VN-Index to reverse and fall below the 1,260 point mark at the close of yesterday's session (November 7).
VN-Index slightly decreased with liquidity remaining low, showing that domestic investors are still very cautious despite the strong increase in the US market last night.
At present, due to pressure on exchange rates and foreign investors continuously selling, the general market has not shown clear signs of a reversal to increase points.
Foreign investors continued to net sell hundreds of billions of dong in the session of November 7, with the focus still on the big pair VHM and MSN, while "slowly" collecting bank stocks.
Meanwhile, the overall picture of the third quarter 2024 financial reporting season has been announced quite brightly, but it still seems to have not met investors' expectations.
According to data from FiinTrade, as of October 30, 911 listed companies (representing 84.6% of total market capitalization) have announced their business results for the third quarter of 2024.
The total pre-tax profit of the above 911 enterprises increased by 16.1% compared to the same period in 2023, but decreased by 3.1% compared to the previous quarter due to negative results from the financial group (banking, securities, insurance).
This is also understandable when most banks, except for the large-cap group, had difficulty lending during the period, leading to a decrease in credit revenue; the securities group faced depleted market liquidity and poor proprietary trading; and for the insurance group, the consequences of last year's crisis were still lingering, combined with the negative impact of compensation for the recent large storm and flood, leading to poor business results...
The lack of support from cash flow is the reason why VN-Index has not been able to recover strongly. To create a new trend, the market needs to have stronger shake-off sessions before going up. Therefore, the general recommendation is that investors should continue to maintain a cautious stance, prioritizing opening buy positions to explore industry groups that are expected to benefit from the US presidential election when VN-Index tests the support level of 1,248-1,250 points.
Experts from KBSVN Securities Company believe that although the overall market decline is not wide, investors' sentiment is still relatively cautious and the above resistance zones with large supply will significantly challenge the index's recovery.
As the short-term trend is still neutral, investors are advised to maintain only a safe position and avoid making price chasing decisions.
Meanwhile, Asean Securities Company maintains the view that the market will continue to recover slowly in the short term. Investors are advised to closely follow exchange rate developments and the State Bank's actions in the coming time to consider increasing their holdings when the market shows signs of better balance, along with trading volume, focusing on stocks with good fundamentals and positive Q3 business results, and have cash ready to disburse when stocks reach attractive valuations.
