Market hot spot
The trading day on May 20, 2022 was quite calm. Despite the negative information in the peripheral markets, the Vietnam index fell less than 1 point to 124072. When money began to pour into the market, the Vietnam index rebounded rapidly. Stocks with good performance this week, such as securities and oil and gas, suffered huge profit taking and selling, leading to the fluctuation of Vietnam index around yesterday’s closing price.
The last two trading days of this week were quite “boring” and closed near yesterday’s closing price, but overall, the Vietnam index performed well this week. Despite the huge selling pressure on the peripheral stock markets, such as the largest decline in US stocks in two years on May 18, the Vietnamese stock market still showed an upward trend. This week (from May 16 to May 20), the Vietnam index rose 57.94 points (or 4.90%) to 124071 points. This week, the average daily turnover was 1358047 trillion Vietnamese Dong, down 19.29% from last week. The Hanoi index rose 4.63 points (or 1.53%) to 307.02, with a slight increase of 2.7% in turnover compared with last week.
This week, the market rose across the board, with 20 of the 21 sectors rising. The sectors with large increases include oil and gas (up 15.4%), securities (up 15.1%), chemical fertilizer (up 14.1%), etc. Only the plastics sector (down 6.2%) showed a downward trend, due to the recent soaring oil prices and investors’ concern that costs will increase, reducing the profitability of the plastics industry, which had a weak profit margin.
The total net sales of foreign capital in Ho Chi Minh market is only vnd 96 billion, mainly concentrated in large cap stocks such as ssi-ssi Securities Co., Ltd. (net sales of vnd 575.87 billion ≈ 165.8 million), HPG Hefa Group Co., Ltd. (net sales of vnd 422.06 billion ≈ 121.52 million), STB Saigon commercial Bank (net sales of vnd 194002 billion ≈ 55.86 million). Buying focused on DPM Vietnam petroleum, fertilizer and chemical company (net purchase of vnd 220.74 billion ≈ 63.55 million yuan), vnm Vietnam milk Co., Ltd. (net purchase of vnd 147.27 billion ≈ 42.4 million yuan), MSN Mashan Group (net purchase of vnd 134 billion ≈ 35.7 million yuan).
Investment advice
On the last trading day of this week, the Vietnam index fluctuated slightly and the trading volume was at a medium level. Despite the sideways shock, the real estate, construction, fertilizer and other sectors still attracted a large influx of funds.
This week, despite the decline in liquidity, the share price has performed well. The Vietnam index adjusted slightly in two trading days and rose in three trading days. It is worth noting that although the US stocks and Asian markets fell sharply, the Vietnam index still took an independent market and maintained an upward trend. From the weekly chart, the Vietnam index has formed a bull market breeding form, indicating that the short pressure has slowed down. In addition, even if the Vietnam index fell to the lowest level of 1156 points a few days ago, it still maintained the strong support of 1200 points on the whole.
The Vietnam index rebounded upward this week, but lacked the support of trading volume, so the market has not confirmed the recovery trend. CSI believes that the rising trading days in the middle of this week are more inclined to technical rebound. From the daily K-line, the index is still in the downward channel. If there is capital intervention, the Vietnam index may rebound to the resistance level of 13151330 points next week. If there is still no large amount of funds entering the market next week, the index will test whether the bottom of 1156 is firm again.
Therefore, we still suggest investors to increase their positions in profitable stocks. Some stocks that rose strongly today include: CII – Ho Chi Minh City Infrastructure Investment Co., Ltd; Fcn-fecon Co., Ltd.
