Shares to recover amid bargain purchases

November 21, 2022 - 09:46
The recovery since the middle of the last trading week has somewhat eased the anxiety among investors, especially when underpinned by an improvement in liquidity.
An investor sits in front of an e-board showing stock indices in VNDirect Securities Inc. — Photo

HÀ NỘI — Investors are considering buying in amid the current correction movements, as recent slumps have sent good fundamentals to attractive price areas.

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index finished Friday at 969.33 points, an increase of 0.07 points, or 0.01 per cent.

It had risen 1.55 per cent last week.

Việt Nam Foreign Trade Bank Securities Company Limited (VCBS) said that the recovery since the middle of the last trading week has somewhat eased the anxiety among investors, especially when underpinned by an improvement in liquidity.

VNDIRECT Securities Joint Stock Company said more and more information supporting the market had appeared. On the international market, October inflation in the US increased less than forecast, raising the possibility that the US Federal Reserve (Fed) may raise operating interest rates by only 50 percentage points at the next meeting in December, which means interest rate hikes will slow down. The dollar showed signs of correction after creating a peak.

As a result, the international stock market has had positive movements in recent weeks. Domestically, the Government is considering solutions to support the real estate market and corporate bonds. For example, the Government has recently established a working group to remove obstacles and difficulties in the implementation of real estate projects. In addition, foreign investors continued to be strong net buyers. Therefore, VNDIRECT Securities expects the market to maintain its recovering trend this week.

“Việt Nam's stock market returned to a very attractive valuation zone as strong correction recently has attracted foreign cash flows to the market,” the company said.

Foreign investors had the second consecutive week of net buying on the two exchanges with a total net buying value of VNĐ5.1 trillion. In terms of net volume, STB was the stock that was bought the most with a volume of 50.2 million shares. It was followed by Hòa Phát Group (HPG) and SSI Securities Inc (SSI) with 46.2 million shares and 26.4 million shares, respectively. On the other side, Military Bank (MBB) was the stock that was sold the most with 5.7 million shares.

With a strong recovery momentum in the last three sessions of last week, it is possible that VN-Index will break the old downtrend and change its status to more active movement. VN30-Index also has a similar tendency.

From a medium-term perspective, from August 2022 to now, the market has fallen quite deeply and now the VN-Index has returned to the same level as before the COVID-19 pandemic and the current score range of 900-1,000 points can give hope that the market will stop its downward momentum and start an accumulation and recovery cycle, said Sài Gòn-Hà Nội Securities Co.

The market's upturn slowed down due to short-term profit-taking pressure. However, the market still maintained a positive sentiment, as shown by VN-Index and VN30-Index closing slightly up and the effort of cash flow to absorb supply, said Việt Dragon Securities Co.

“The market will continue to struggle below 975 points of the VN-Index before gaining momentum for the next recovery. Therefore, investors can take advantage of correction movements to accumulate stocks with good fundamentals and deep discounts.” VNS