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Regardless that the market benchmark rebounded within the final two periods of the week, low liquidity confirmed that buyers remained cautious concerning the inventory market’s outlook. And there’s not sufficient power for long-term restoration.
The market continued to witness per week of corrections with weaker liquidity. The VN-Index on the Ho Chi Minh Inventory Alternate (HoSe) ended final week at 1,171.31 factors, a achieve of 0.41 per cent. It hit a 16-month low on July 6 at 1,149.61 factors.
On the Ha Noi Inventory Alternate (HNX), the HNX-Index additionally inched up by 2.18 per cent to 277.8 factors.
For the week, the VN-Index declined by 2.3 per cent and the HNX-Index fell practically 0.4 per cent.
Buying and selling worth on the southern bourse dropped by 8.8 per cent over the earlier week to just about VND56 trillion (US$2.39 billion), equal to a buying and selling quantity of practically 2.4 million shares, a lower of 8 per cent.
Equally, the buying and selling worth on HNX reached over VND5.3 trillion, down 14 per cent, whereas the amount slid by 7.5 per cent to 278 million shares.
International buyers had been internet sellers on each primary exchanges final week, with a worth of greater than VND1.13 trillion. Of which, FUEVFVND was internet bought essentially the most, adopted by Dat Xanh Group (DXG) and SSI Securities Company (SSI).
Nguyen Tat Thang, analyst of Saigon – Hanoi Securities JSC (SHS), stated that the VN-Index’s correction after failing to achieve the psychological degree of 1,200 factors has triggered promoting strain to rise, and pushed the benchmark to create a brand new backside in 2022 which was across the threshold of 1,140 factors.
Regardless of demand power showing because the sell-off weakened, serving to the VN-Index bounce again within the final two periods of the week, the low liquidity confirmed that sentiment was nonetheless cautious and there was a scarcity of foundations to help long-term restoration.
“The inventory market is prone to return to a downtrend this week,” Thang stated.
Nevertheless, from a longer-term perspective, he anticipated the market to step by step accumulate as inventory costs are at enticing ranges. Particularly, the price-to-earning ratio (P/E) is low because the financial system continues to get better post-pandemic.
Furthermore, many listed corporations are forecast to proceed revenue development within the second quarter of 2022.
“Lengthy-term buyers can disburse in robust correction periods like that of July 6. Because the market is forming an accumulation zone, they need to contemplate partial disbursements as a result of the buildup course of can take a very long time,” the analyst of SHS added.
In the meantime, consultants from MB Securities JSC (MBS) believed that the nation’s inventory market is consolidating the underside after climbing for 2 consecutive periods with an enchancment in liquidity.
Subsequently, technically, the market is witnessing a optimistic divergence and buyers ought to deal with a selected inventory as a substitute of the benchmark index, stated MBS.
Final week, utility shares misplaced essentially the most with 9.2 per cent of market capitalisation, of which PV GAS (GAS) was down 13.1 per cent, PV POWER (POW) down 4.4 per cent, and Refrigeration Electrical Engineering Company (REE) down 10.6 per cent.
It was adopted by data know-how shares with a fall of 4.8 per cent, and oil and gasoline group down 4.4 per cent in market capitalisation.
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