Market likely to pull back this week: experts
VIETNAM, July 10 – HÀ NỘI — Even though the market’s benchmark index rebounded in the last two sessions of the week, low liquidity showed that investors remained cautious about the outlook for the stock market. And there is not enough strength for long-term recovery.
The market continued to see a week of corrections with lower liquidity. The Hồ Chí Minh Stock Exchange (HoSe) VN index ended last week at 1,171.31 points, a gain of 0.41%. It hit a 16-month low on July 6 at 1,149.61 points.
On the Hà Nội Stock Exchange (HNX), the HNX index also rose by 2.18% to 277.8 points.
For the week, the VN index was down 2.3% and the HNX index fell almost 0.4%.
The value of trades on the South Exchange fell 8.8% from the previous week to almost 56 trillion VNĐ ($2.39 billion), equivalent to a trading volume of nearly 2.4 million shares, a decrease of 8%.
Similarly, the value of trades on HNX reached over VNĐ5.3 trillion, down 14%, while volume fell 7.5% to 278 million shares.
Foreign investors were net sellers on the two major exchanges last week, with a value of over VNĐ1.13 trillion. Among them, FUEVFVND was the biggest net seller, followed by Đất Xanh Group (DXG) and SSI Securities Corporation (SSI).
Saigon – Hanoi Securities JSC (SHS) analyst Nguyễn Tất Thắng said the VN-Index correction after failing to reach the psychological level of 1,200 points raised selling pressure and pushed the index higher. reference to creating a new low in 2022. which was around the threshold of 1,140 points.
Despite the onset of demand strength as selling waned, helping the VN index rebound over the past two sessions of the week, weak liquidity showed that sentiment was still cautious and that there was a lack of foundations to support long-term recovery.
“The stock market is expected to resume a downtrend this week,” Thắng said.
However, from a longer-term perspective, he expects the market to gradually build up as stock prices are at attractive levels. Specifically, the price/earnings (P/E) ratio is weak as the economy continues to recover from the pandemic.
In addition, many listed companies are expected to continue profit growth in the second quarter of 2022.
“Long-term investors may cash out during strong corrective sessions like July 6. As the market forms an accumulation zone, they should consider partial cash outs as the accumulation process can take a long time,” he said. added the SHS analyst.
Meanwhile, experts at MB Securities JSC (MBS) said the country’s stock market was consolidating the bottom after climbing for two consecutive sessions with improving liquidity.
Therefore, technically the market is experiencing positive divergence and investors should focus on a specific stock rather than the benchmark, MBS said.
Last week, utility stocks lost the most with 9.2% of market capitalization, including PV GAS (GAS) down 13.1%, PV POWER (POW) down 4.4% and Refrigeration Electrical Engineering Corporation (REE) down 10.6 percent.
It was followed by information technology stocks with a 4.8% drop, and the oil and gas group down 4.4% in market capitalization. VNS