The opportunity to create a short-term bottom is rekindling
The stock market has “reversed” in the first session of the week with a decrease of nearly 22 points of the VN-Index. The turn of blue-chips spread to other sectors and was more negative at the end of the session, pillar groups were covered in red. The bright spot was the strong increase in demand, which helped VN-Index regain about 10 points in the ATC matching session, however, the liquidity was still low when the trading value of all 3 exchanges was only about 17,200 billion dong.
Investors are placing high expectations on the bottom forming In the short term, the VN-Index relied on a number of signs such as a strong recovery from the support area of 1,150 points last week, or the demand appearing in the first session of the week when the VN-Index neared the psychological buffer zone of 1,200 points. .
However, that is just a necessary condition, investors will have to follow closely the movement trends of cash flow and impacts from the world market to have an appropriate strategy.
Investors are placing high expectations on creating a short-term bottom of VN-Index. (Illustration image – Photo: Investment Newspaper)
Currently, VN-Index has dropped by more than 20% compared to the beginning of last month, according to technical analysis, the signal of a “bear” market appeared when about 80% of stocks fell sharply. However, recent movements show that the opportunity to create a short-term bottom is rekindled.
“After the previous decline, VN-Index has reached the support zone, which is technically very strong, not only in the short term, but can be a support point for the medium and long term, around 1,150 points. The signal of positive reaction when the index reached that support point, VN-Index rebounded strongly, providing the necessary conditions to determine the short-term bottom,” said Mr. Nguyen Xuan Binh, Director of Analysis Division, the Company. KB Securities Vietnam, review.
Some other opinions said that, currently, the stock market is in the information valley, so it is difficult to rebound in the V-shaped pattern, the index may move sideways or retest support areas with high liquidity. low account.
Looking back at history, the stock market has experienced many volatile periods with some similarities, so many investors expect an attractive valuation will trigger long-term investment cash flow.
“This is a relatively attractive area in terms of fundamentals, as I see some groups of stocks doing very well, but at prices that are hard to reach under normal conditions,” he said. Le Ngoc Nam, Investment Consultant, Tan Viet Securities Joint Stock Company, said.
Statistics from SGI Capital show that, in the past 10 years, the market has sold off 3 times, bringing the VN-Index’s P/E valuation to less than 12 times. After that, the index increased from 35 to 80% within 12 months and both surpassed the old peak. This unit also said that the sign that the market has made a bottom is that the index has dropped by more than 20% from the peak area, the liquidity has decreased by about half, and the P/E valuation has dropped to a low level.
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