Stock investors have experienced many bitter emotions that have caused the VN-Index to fall deep to nearly 1,250 points and then have a recovery momentum when the leaders of the Ministry of Finance and the State Securities Commission continuously issued messages to reassure investors.
Why sell them?
What causes the market to be sold off? According to experts, there are 3 main reasons. Firstly, the negative market psychology after some large corporate leaders caught the labor cycle. Secondly, the global market is adjusted due to increased inflation and supply chain fault. And finally, the large "margin" collateral pressure has been bad towards the market, including good basic stocks.
Technically, KBSC analysts said that VN-Index has quickly regained recovery momentum after fluctuations. After a fairly positive recovery from a short-term bottom, the index may soon face fluctuating pressure from the resistance zone around 146x and further into 1400. However, the remarkable support zone around 1320 (+10) is expected to play a supporting role for the VN-Index and the opportunity to expand the recovery momentum is still highly appreciated.
In April, foreign investors net bought 150 million USD, which is also a factor that helps the market balance.
According to BSC experts, market sentiment is gradually stabilizing, and Q1/Q2 stocks have responded positively to the information. The short-term recovery has not helped the index return to the uptrend but has relieved psychology and opened up expectations that the index can return to a balance around 1.420 points after the holiday.
Overall last week, the VN-Index only decreased slightly by -0.9% with 15/19 industries decreasing, but there were up to 220 stocks increasing in price compared to 164 stocks decreasing.
Real estate, passenger cars, industrial goods and construction services are the 4 industries that increased after falling sharply last week.
As of April 29, 506 stocks accounting for 66% of the stocks listed on HSX and HNX have announced the first quarter business results (KQKD) with a growth rate of 41% over the same period. 62% of companies had positive growth compared to the same period and 12% of stocks suffered losses.
12/30 VN30 shares announced business results with after-tax profit growth of 32% over the same period last year and 16/19 Bank shares had after-tax profit growth of 34.7%.
The top 5 stocks contributing to absolute profit growth after tax include VPB, DPM, SHB, TCB, DGC, accounting for 59% of additional profit over the same period.
At the end of the holiday, the market may have accumulation sessions around the 1366 area. In particular, the Diamond ETF portfolio has added 3 new stocks: DHC, OCB, TCM, BSC expert predicted.
Is the time for disbursement yet?
VN-Index is trading at a 12-month P/E of 14.7 times (at the time of April 25, 2022), this is the lowest level since September 2020 and down 15.2% compared to the peak since the beginning of the year.
VNDirect experts said: We expect market profit to grow by 23% over the same period and 19,9% in 2022 and 2023, making the forecast P/E for 2022 12.3 and the forecast P/E for 2023 10.5 times, much lower than the average P/E of the past 3 years of 16.2 times.
We believe that market valuations are very attractive for long-term investors, who are looking for well-managed enterprises with high profit growth.
Recent efforts by regulators to improve the transparency of the stock market will bring confidence to domestic and foreign investors, and contribute to the sustainable development of the market.
