The stock market in May 2022 will be “buy in May” instead of “sell in May” when the prices of many stocks have discounted to very attractive levels for long-term holding.
Vietnam’s stock market is going through deep corrections with a relatively strong decrease. In the Seminar on Choosing a Portfolio No. 2 with the theme “Overcoming fear” held by the Securities Investment Newspaper on the afternoon of April 28, Mr. Do Bao Ngoc, Deputy General Director of Vietnam Kien Tien Securities Joint Stock Company, said that , the market’s decline was influenced by factors related to prosecution of cases, violations and also negative rumors being spread on groups.
According to Mr. Ngoc, investors have had nearly 3 months with the stock market going above the peak of 1,480 to 1,530 points with high liquidity. This is the distribution area, which occurs during the period when the Fed raises interest rates, and the interest rate trend is even higher.
Up to now, the market has adjusted initially due to valuation factors and then corrected further due to investor fear related to prosecution cases, detention of some business leaders, or baseless information. At the same time, this expert said, although there has been no move to increase interest rates by the State Bank, overnight interest rates have increased within a month now. This is considered a signal and the Vietnamese stock market usually lags behind the US market by 1-2 months. When the market drops, the peak is more obvious.
Mr. Ngoc believes that the market has fallen somewhat excessively, the 15% discount within a month has brought many stocks in the VN30 group back to an extremely attractive price range for long-term investment. The recent correction of the market, despite having a large margin in a large downtrend, is not clear. Thereby, the expert believes that the market will recover in May.
“May of this year will not be “sell in may” but “buy in may”. I see this as a good opportunity for investors to participate in the market and choose stocks with growth potential.”Mr. Ngoc said.
The Seminar on Choosing List No. 2 with the topic “Overcoming fear” was held by the Securities Investment Newspaper on the afternoon of April 28.
Regarding the group of stocks that are of interest at this time, Mr. Ngoc assessed that the main investment topic is businesses that have a strong recovery after the COVID-19 wave, specifically Banking – Financial Services. (VPB), Retail (MWG, DGW.
Mr. Ngoc also pointed to the group of stocks that benefit from the “tractor” of public investment, in which the group of building materials, infrastructure and raw materials with the outstanding representative of HPG, besides can participate in consult KSB and HHV. In addition, the expert also recommends buying defensive stocks
Sharing more, Mr. Ngoc said he focuses on value investing and is not interested in bottom fishing. “If possible, I usually disburse at the bottom 2 – the price is higher than the bottom 1. Since all market risk is already reflected in the stock price at the bottom 1, it is safe to choose the second bottom price. than”.
For investors who still hold cash, Mr. Ngoc thinks that in the next 3 – 6 months, the opportunity for price growth is quite high. The current time is worth for investors to be “greedy”, however, it is necessary to look at three factors before deciding to buy stocks, including (1) corporate finance, (2) corporate governance and (3) ) cheap pricing.
“I highly recommend some stocks like HPG, FPT, TCB, VIB, .. , these are all blue-chips with very cheap prices, strong growth potential and leading corporate governance factors.” said the expert.
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