Scared with the market commentary of BIDV Securities Company

In the first trading session of the new week, Vietnam’s stock market dropped sharply on a large scale. VN-Index dropped the most from the session on April 26, 2022, losing 59.64 points (4.9%) to 1,269.62 points, liquidity improved slightly to 17 trillion dong through the matching channel. The number of losers on HoSE was up to 445 stocks, of which 227 were on the floor.

Notably, after the end of the trading session, BSC Securities Company posted market comments, but unlike every other day, this time the comment section of BSC contained rare words in any market report. which school:

“Just opened the first session of the week, VN-Index has sow yourself from a height of 1,330 points. After free-falling more than 30 points, the arms of the buyer reach out Grab the index. However, selling seems to make the index too heavy, buyers hand slip, helplessness Looking at the VN-Index continued to fall to the next support zone around 1,280 points, then fell again to the 1.265 zone before rising to close at 1,270.

So after a day Falling all 9 clouds, VN-Index closed down nearly 60 points compared to the previous session. Market breadth tilted to the negative side with 19 out of 19 sectors dropping, 13/30 stocks in the VN30 group hitting the floor price, the remaining 17 stocks… falling deeply. Regarding the transactions of foreign investors, today this block was a glimmer when they were net buyers on both HSX and HNX. The current market sentiment is still negative with a long red candle; maybe in the coming sessions, the market will fall further to the 1,250 area.”

Market commentary in the stock news on May 9 of BSC. Screenshots.

The highlight of the market in this session was that the entire VN30 basket lost points, the VN30 index dropped 4.31% with 13 stocks hitting the floor. Some stocks with a slight decrease of less than 1% at the close were VHM, VIC and VNM. The decline in the low-mid-cap group was stronger, 5.45% and 5.92% respectively on the VNMidcap index and the VNSmallcap index. The selling force was also significantly greater on the other two exchanges, HNX and UpCom.

Industry groups that fell more strongly than the general market included non-essential consumer goods, energy, finance, information technology, materials, utilities, etc. While industry groups that struggled to stay strong include real estate. products and essential consumer goods.

Taking advantage of the low price area, foreign investors turned to be a net buyer of 574 billion dong on HoSE. Leading the net buying group were VHM (94 billion dong), HPG (63.8 billion dong), GMD (60.2 billion dong), VRE (50 billion dong), DGC (49 billion dong), SSI (32 billion dong). billions dong). The net selling side, the highest in NVL, was only 38.5 billion dong.

Commenting on the next session (May 10) and the following sessions, Saigon Securities Company (SSI) believes that the VN-Index is in the process of creating the second bottom after forming the first bottom since the trading session. Translated on April 26, 2022. With the current correcting inertia, the VN-Index is likely to test the support area near 1,260 – 1,250 points in the coming sessions.

With a sharp drop at the beginning of the week, the P/E valuation of VN-Index and VN30 continued to be discounted to 14 times and 13.5 times. This is a valuation lower than the average of the last 5 years, especially for large stocks in VN30. This is expected to boost demand from long-term value investors.

However, from the technical point of view of Saigon – Hanoi Securities Company (SHS), this movement is somewhat not supportive for VN-Index’s ability to recover when it has entered the wave. adjusted a with the theoretical target around 1,200 points and the downtrend may continue in the session 10/05. Accordingly, VN-Index may recover again if bottom-fishing demand in the support area of ​​1,225-1,250 points (bottom of July 2021) is good enough.

For long-term investors, if the market corrects, it will be an opportunity to increase the proportion in the portfolio of stocks with good fundamentals and growth potential in the future. Shorter-term investors can check out our watchlist of stocks in this newsletter.

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