Following the recovery session after the last two sessions, the stock market continued to have a smooth trading session on November 12 with the support of some large-cap stocks.
The real estate group is the "locomotive" to attract the VN Index to skyrocket by more than 38 points and re-establish the 1,600-point mark. The largest contribution to the index is still the two familiar codes of Vingroup, VIC and VHM. According to statistics, these two real estate codes alone have contributed to the VN Index's increase of nearly 14 points.
Not only contributing the most points to the market, real estate stocks also contribute the most to the list of ceiling codes. Statistics show that the entire HoSE floor has 8 codes that have increased their breadth, including 3 local codes: NVL, CII, KHG.
Notably, almost all industry groups have a positive impact on the index, from banking, securities, retail, telecommunications, steel, insurance, chemicals, and tourism. On the contrary, VN Index is only slightly affected by some codes such as: BHN, TCX, BCM, ACG, PAN, VCI.
At the end of today's session on November 12, VN Index increased by 38.25 points, equivalent to 2.4%, to 1,631.86 points. The HoSE electricity board was in the green with 268 stocks increasing, compared to 58 stocks decreasing and 36 stocks moving sideways. Meanwhile, the VN30 basket electricity board today only has the BCM code closed in red.
In contrast to the increase, HoSE's liquidity only increased slightly compared to the previous session. Specifically, 748 million shares were transferred, equivalent to a trading value of more than VND 21,800 billion.
One of the reasons for the lack of liquidity breakthroughs is the increase in selling pressure from foreign investors. In today's session, foreign investors net sold nearly VND400 billion on the HoSE.
Investors assessed November as a continuous adjustment after the previous strong increase of the VN-Index, reflecting the cautious sentiment of investors in the context of strongly differentiated third quarter business results. The VN-Index is in a mid-term adjustment trend.
In addition, large medium-term cash flows have gone out, showing no signs of returning as there have been no sharp declines of a shaky nature. Liquidity in the whole market decreased sharply, corresponding to only about 60% compared to the explosive liquidity level in August, showing that cash flow was out of observation.
When the VN-Index has adjusted above 10% from the peak and most stocks have a deeper adjustment level. Analysts from DSC Securities Company believe that it is important for investors to be alert to evaluate two factors, which is that the market outlook in 2026 will remain strong; and market valuation will start towards the low price zone.
Observing the P/E and P/B digital transformation charts of the VN-Index in the past 5 years, the market valuation is currently at a low level compared to the historical average. In addition, in the low interest rate environment and the Vietnamese stock market has just been upgraded, re-evaluation to a higher level is entirely possible.
Currently, with the forecast for the whole market profit growth of about 15% in the next 12 months, the forecast 12-month P/E of the VN-Index is only about 11.85 times - this is a very low P/E compared to the 5-year average. The market price level is at a low level, opening up many accumulation opportunities for long-term investors when expecting corporate profits to continue to grow.
In the last 2 price increases in the period of 2020 - 2022 and 2016 - 2018, the VN-Index has also witnessed many strong adjustments. According to DSC statistics, 10-15% declines can completely appear in a long-term uptrend, even a necessary condition for the market to recreate a new price level. For example, in the period from 2017 to present, the index has adjusted at least 4 times within the range of 10%, 12% but then recovered and established a higher peak.
In November, DSC assessed this as a potential area that could create a medium-term bottom and a buying opportunity for investors holding cash.
