Appears a lot of “good news” for the stock market

The VN-Index’s strength session is also a “medicine” to help investors relieve the “pain” when they have suffered heavy losses during the past time.

Following last week’s recovery, VN-Index gained strongly in the first session of the week. With the excitement, the cash flow rushed in, pulling the market liquidity up quickly.

Closing the session on November 28, VN-Index gained more than 35 points, officially regaining the psychological level of 1,000 points after 1 month. Market breadth was skewed to the buyers with 836 stocks gaining in price, of which 257 stocks gained in full range.

Besides the index’s gain, the liquidity on HOSE also increased by 62% compared to the previous session to close to 16,000 billion dong. This shows that the pessimism of investors has been partly “untied” after the fluctuations of the market over the past 1 month.

The VN-Index’s strength session is also a “medicine” to help investors relieve the “pain” when they have suffered heavy losses during the past time.

Mr. Huynh Minh Tuan – Founder of FIDT Joint Stock Company said that there is a lot of “good news” for the stock market.

Firstly , the market received “good news” from Taiwan. On November 23, the Fubon FTSE Vietnam ETF, a fund from Taiwan (China) was approved by the Taiwan Financial Supervisory and Regulatory Commission for the 4th time, with the capital up to 160 million USD, equivalent to about 4 trillion VND.

This fund specializes in investing in VN30 and will disburse into large cap stocks on HoSE after successfully raising capital. However, according to the regulations in Taiwan (China), the funding round needs to be approved, which usually takes 1 week. After being approved, Fubon will conduct an initial offering and pour it into the Vietnamese market as soon as the call is successful.

Mr. Tuan expects this fund will complete the mobilization by the end of next week and start pouring capital into VN30 days later. This will be an important source of foreign capital to support the market in early December.

Third,  the corporate bond secondary market has stabilized after last week’s sell-off. Recently, a large issuer like Masan (MSN) has successfully issued a private placement for the purpose of rolling debt, along with an announcement to buy back some bonds due to 2023. This proves shows that the market will not be congested but still have “land” for businesses to demonstrate financial capacity.

Fourth,  the pessimism was partly removed when two real estate stocks “dance on the moon” soon solved the liquidity story. For Novagroup, finding a partner to transfer 150 million shares of NVL may help NVL avoid the risk of default. For PDR, it has also found a partner to transfer BDS projects and solve the liquidity story. Today’s session NVL was “rescued, although PDR has not yet exited the floor, it has matched a large volume.

Fifth , exchange rate pressure decreased significantly. Last week, it continued to confirm the trend of the exchange rate cooling down and reducing pressure quite clearly. This is creating favorable conditions for the State Bank to support system liquidity and if the trend continues and is stable, it is possible to implement monetary policies to support the economy and the market. With the pressure on the exchange rate, the SBV net injected slightly more than 6 trillion dong into the banking system’s liquidity last week and the liquidity story is quite good.

In addition to the above positive signals, Mr. Nguyen The Minh – Director of Yuanta Securities Vietnam said that the sign of cooling down interest rates is also good news for the stock market. Specifically, in the recent meeting of the Fed, it also gave signals that it will reduce the heat in raising interest rates for economic development. Some banks in the country have also moved to reduce interest rates. These signals have a positive impact on investor sentiment.

According to expert Yuanta, the market is currently waiting for some government solutions to support liquidity for the real estate group. Currently, the State Bank has not used up the 4% room for banks, so there is room to open more room, but whether the cash flow can flow into the real estate industry is still a question investors are waiting for.

“Basically, when VN-Index surpasses 973 points, the short-term bottom has been established. In particular, surpassing the psychological resistance level of 1,000 points also strengthens the market’s momentum in the short term, although the medium and long term trend is still in a downtrend.

VN-Index may approach the nearest threshold of 1,010 points, further it may be 1,100 points. However, on the way up, there will still be shakes, because profit-taking pressure still exists in small and medium-sized stocks that have increased hot in the past time, “said Mr. Nguyen The Minh.

Regarding the direction of cash flow, Mr. Minh said that investors should focus on key Bluechips with strong growth momentum, such as banking and food production. In addition, small and medium cap stocks can pay attention to electricity, water and transportation.

Ha Anh/Market life