Although the VN-Index has returned to the 1,200-point mark, the recovery efforts of the stock market in recent sessions have not been able to recover all the losses. In the short term, entering the August information "trough", market developments are somewhat difficult to predict.
Along with the recovery trend of the market in many countries, VN-Index last week also quickly regained the mark of over 1,200 points. Many good domestic and international news supported the recovery of stocks.
In particular, the business results of listed enterprises in the second quarter grew beyond forecast. According to the Analysis Department of VNDirect Securities Corporation, the net profit of listed enterprises in the second quarter grew by over 20% compared to the same period, exceeding the previous forecast of the market (only 5-10%).
Market sentiment has gradually returned to balance after the US Department of Labor announced that the number of people applying for unemployment benefits for the first time last week was lower than expected, partly erasing concerns about the risk of the US economy falling into recession.
At the same time, the US stock market also recorded the strongest increase in 2 years, oil prices increased again along with US government bond yields recovering to 4%.
In the short term, the analysis team of Saigon - Hanoi Securities Joint Stock Company (SHS) believes that the market in August will have an information gap, after enterprises have announced their second quarter financial reports. Therefore, the market depends heavily on the growth prospects of large-cap enterprises and GDP growth.
“The VN-Index fluctuates and falls sharply around the 1,200-point area, opening up many positions to accumulate good-quality stocks. Short- and medium-term investors should maintain a reasonable proportion and limit chasing when the VN-Index recovers to the 1,250-point area,” SHS recommended.
Despite fluctuations in domestic and international financial markets, VNDirect assesses that the medium-term outlook for the Vietnamese stock market remains positive...
Supporting factors for the market include positive business results in the second quarter, forecasting that the total market profit could grow 18% this year.
Notably, the scenario of the US Federal Reserve (Fed) lowering its operating interest rate 2-3 times from now until the end of the year is gradually becoming real, helping to reduce pressure on exchange rates.
The State Bank can be more flexible in injecting liquidity into the system, especially in the fourth quarter (through open market operations and USD purchases), thereby helping to maintain domestic interest rates at attractive levels to support economic growth.
In the context of the market gradually regaining balance, many experts recommend that investors consider restructuring their portfolios for medium and long-term investment goals.
Source: CafeF
