Positive signals support investors' mood this week

An MB Securities employee talking to a customer at its office. Many listed companies have attractive valuations after a three-week downturn. — Photo top247.vn

HÀ NỘI —  The stock market fell for a third week in the row, but the benchmark remained at the previous bottom of 1,150-1,160 points. Experts said that this is a positive signal helping strengthen investors’ sentiment this week. 

The VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) ended last week at 1,185.48 points, a decline of 0.29 per cent, while the HNX-Index on the Hà Nội Stock Exchange (HNX) fell 0.45 per cent to 275.93 points.

For the week, both benchmarks registered a weekly decrease, of which the VN-Index lost 2.6 per cent and HNX-Index dipped 1.5 per cent. 

Liquidity dropped sharply, but cash flow still found investment opportunities on leading stocks in banking, securities, steel, real estate, insurance and energy sectors. 

The order-matching liquidity on HOSE tumbled to a record low set in 2020, an average of more than VNĐ11 trillion (US$473 million).

PV GAS (GAS) led the VN-Index’s downside after dropping 14.9 per cent last week. It was followed by Vingroup (VIC) and Vinhomes (VHM).

In the top 10 stocks weighing on the VN-Index, two power ticker symbols, PV POW (POW) and Refrigeration Electrical Engineering Corporation (REE), also recorded sharp declines of 15.5 per cent and 13.1 per cent, respectively. 

Meanwhile, foreign investors continued to be net buyers last week with a net value of nearly VNĐ300 billion. Despite a sharp decrease last week, foreign investors still net bought more than VNĐ210 billion of GAS shares, making the ticker symbol the most bought stock.

MB Securities Company (MBS) said that the country’s stock market hit a third weekly loss, but there are some positive signals. Technically speaking, as there were pillar stock groups leading the market and the VN-Index did not break through the bottom levels, investors’ sentiment was supported, the securities firm added. 

In general, after three consecutive weeks of decline, many stocks cracked through the bottoms hit in May and had high discount rates, such as securities, oil and gas, insurance, and steel stocks, thereby attracting investors’ attention. 

In addition, as the market is gradually ending the second quarter with the business results season coming,  investors can buy potential stocks at good prices. 

According to Mirae Asset Securities Việt Nam, the VN-Index’s downtrend was stronger after the benchmark broke the 1,200 point-level. On the technical front, the fact that the maintenance of the index at the previous bottom of 1,150 – 1,160 points is a positive signal to help stabilise investors’ sentiment.

This week, “the index is likely to continue to test this level and we consider this an important development for the medium-term trend of the VN-Index”, said Mirae Asset Securities Việt Nam.

Saigon – Hanoi Securities SJC (SHS) said that the market has returned to the bottom of the previous correction and the market’s price to earning ratio (P/E) is still around 12.5x. And many listed companies have attractive valuations. 

“Although the VN-Index’s path is not yet clear, many stocks with good fundamentals and at attractive price levels, currently, are opportunities for disbursement of long-term investors,” SHS said. 

The economy is facing the risk of inflation, but with the recovery of the economy post-pandemic and impressive growth of listed companies, the current share prices are still good chances for long-term investors to gradually accumulate stocks. VNS