In yesterday's trading session (November 5), the VN-Index rebounded slightly to nearly 1,250 points, but with high cautious cash flow and many investors staying on the sidelines, the index retreated and closed with an insignificant increase. The recorded liquidity was one of the lowest sessions since the beginning of the year.
Foreign investors still net sold more than 870 billion VND in the session of November 5, with the focus on selling the big pair MSN and VHM, while the buying portfolio "prioritized" bank stocks.
Increased caution ahead of external events, with the US election as the focus, may be the main reason for the lack of cash flow in the market. Meanwhile, the overall picture of the third quarter financial reporting season has been quite bright, but it seems that it has not met investors' expectations.
According to data from FiinTrade, as of October 30, 911 listed companies (representing 84.6% of the total market capitalization) have announced their business results for the third quarter of 2024. The total pre-tax profit of the above 911 companies increased by 16.1% compared to the same period in 2023, but decreased by 3.1% compared to the previous quarter due to poor results from the financial group (banking, securities, insurance).
Although the business results of many enterprises show signs of improvement, the stock market has not yet reflected that.
According to many experts, the market is in a state of waiting until the results of the US presidential election to determine which direction the country's policy will take, thereby affecting the world financial market and Vietnam. Market liquidity has been increasingly depleted in recent times, explaining this waiting mentality.
Experts from Asean Securities Company believe that the market may have a slight recovery in the short term, but investors should still closely follow the developments in world oil prices, exchange rates, and the State Bank's actions in the coming time, to wait for clearer signals confirming the recovery trend and rebalancing of the VN-Index, and be ready to disburse long-term stocks when the market trend is confirmed and the stock price is attractive.
Experts from VCB Securities Company recommend that investors continue to maintain the portfolio ratio at 50-60% and limit disbursement at the present time, while closely monitoring market developments to promptly restructure the portfolio if the market records a change in short-term trends.
For risk-averse investors, they can consider selective short-term surfing opportunities in some highly speculative stocks that are showing signs of reversal after recording a deep correction and attracting the attention of cash flow.
