The stock market entering the first trading session of the new week no longer has the same negative sentiment as the trading session at the end of last week. There was even a time when in the middle of the morning session of December 15, the VN-Index recovered and increased by nearly 20 points. However, in the context of cautious cash flow, the cautious psychology of buyers and sellers has caused the trading market to be gloomy.
At the end of the trading session, the VN-Index decreased slightly by 0.88 points to 1,646 points. Liquidity decreased when the trading value on HOSE reached more than VND18,700 billion. Foreign investors' transactions are a plus point when they net bought about VND664 billion.
The VN30 group ended the session with a slight increase of less than 3 points with 15 stocks increasing and 9 stocks decreasing. Of which, VRE is still the best increase code to 5.3%, ending the session at VND 28,900/share and matching orders of more than 11.7 million units; VPB increased by 3.6% and matched 18.3 million units; VNM increased by 3% and matched 4.24 million units; the rest increased by more than or less 1%.
In contrast, LPB decreased the most in the bluechip basket when it lost 3.2%; the pair of large Vingroup companies, VIC and VHM, decreased by 0.8% and 1.7%, respectively. Notably, VPL continued to have a floor session when it closed the session down 7% to 78,800 VND/share.
The decrease in index and significantly weakened liquidity continue to reflect investors' cautious sentiment after a long increase since mid-November and during the " closing" period at the end of the year. This caused prices to decrease mainly due to lack of buying power rather than strong selling pressure.
In that context, according to HSC Securities Company, this is still a more rebalanced correction than a trend reversal signal and the VN-Index re-examining technical support zones is a common trend. For investors, this period could open up opportunities to accumulate stocks with good fundamentals, as the market is likely to fully reflect information after the holiday, expecting improved liquidity and cash flow to return.
According to MBS Securities Company, in the past 3 years, the number of weeks VN-Index has decreased by more than 5%, and last week was the third time. In the previous two times, the market recovered and formed an upward bottom.
At present, if excluding Vingroup, VN-Index is equivalent to the 1,370 point range - the end of June, which is also the starting point for the strong increase in the following two months (August and September).
Regarding valuation, the expected P/E for next year of the VN-Index is currently around 14.35 times (according to Bloomberg). When converting the VN-Index to the 1,370-point zone, the expected P/E is only about 11.88 times.
"We believe that stocks such as Securities, Banking, Real Estate... will have a technical recovery period next week after being " oted" from the accumulation base. VN-Index is expected to regain the MA20 threshold around 1,690 points, while the near support zone is located at the 1,600-1,220 point area," MBS analysis group commented.
