The Vietnamese stock market last week (from May 18-22) recorded negative developments when VN-Index reversed to decrease after a previous strong increase.
The VN-Index fluctuated with alternating ups and downs in the first sessions of the week, then gradually weakened significantly towards the end of the week when pillar stocks no longer maintained their supporting roles.
Cash flow still maintains a cautious state while net selling pressure from foreign investors is increasing, causing the decline to widen after the index broke through the 1,900 point mark.
Ending the trading week from May 18-22, the VN-Index decreased by 44.47 points, equivalent to -2.31% to 1,877.13 points. Liquidity showed signs of improvement, returning to the 20-week average level.
Accumulated in the week, average order matching liquidity on the HOSE floor reached 913 million shares/session, down more than 11% compared to the previous week, average trading value reached 27,075 billion VND/session, up more than 8%.
Regarding the level of impact, VHM, VIC and VCB are the stocks that put the most pressure in the last session of the week, taking away more than 11 points of VN-Index. Conversely, the total of 10 most positive contributing codes also only helped the index increase by less than 2 points, showing the overwhelming dominance of the selling side.
Red color covered all industry groups. The energy industry group "bottomed the bottom" of the market with a decrease of 2.67%, affected by the correction momentum of leading stocks.
In addition, large-cap groups such as real estate, industry and finance also put significant pressure on the market with a series of stocks falling by over 1%.
On the HOSE floor, the group of stocks that increased best were mostly mid-cap and small-cap stocks with high speculation, but besides OGC with a high increase, the rest also only increased by 7-9%, reflecting a difficult trading week when seeking short-term opportunities in the market.Notably, PC1 stock appeared when it increased by more than 15% thanks to a part of investors buying at the bottom after the shocks related to the prosecution of some key leaders of the company recently.
In the opposite direction, VNE stock continued to be heavily sold off after facing the possibility of mandatory delisting due to the audit organization's qualified opinion on financial statements for 3 consecutive years.
On the HNX exchange, THD shares increased sharply by nearly 50% for another week. This stock, after a long period of sideways movement around the price of 30,000 VND/share, has continuously "bought" in the past two weeks with many ceiling-price increase sessions. Thereby, bringing the stock price back to the highest level since mid-May 2022. The previous week, THD shares also became the champion of price increases on the HNX exchange with an increase of nearly 54%.
Experts assess that the stock market has returned to an attractive valuation zone. However, in the face of existing macroeconomic pressures as well as lack of spreading cash flow, many stocks are in a state of accumulation to create a foundation, waiting for a time of explosion. Therefore, the market will tend to move sideways to accumulate in the near future to wait for a more positive signal.
Financial analyst Dr. Nguyen Duy Phuong - Director of Investment Analysis Division of DG Capital - said that market valuation is at a very attractive level, the P/E ratio of the VN-Index basket if excluding Vingroup stocks is only about 12 times. If including Vingroup, P/E is about 15 times, equivalent to a 10-year average, this is a very reasonable valuation level.
He emphasized that the market valuation foundation is currently quite low.However, due to lack of spreading cash flow, many stocks are in a state of accumulation to create a foundation, waiting for the time to explode.
In the current context, this expert recommends that investors should maintain a ratio of about 50% of stocks and 50% of cash, limiting the use of margin at the present time.Potential industry groups such as public investment (especially steel, construction materials) and retail can be interested.These are two industry groups with opportunities in the medium and long term.
