Strong cash flow into the stock market has caused many groups of stocks to be flooded with green, "breaking" the gloomy trading atmosphere of recent sessions.
At the end of the trading session on July 9, VN-Index increased by 10.15 points to 1,293.71 points. Trading volume reached more than 821.8 million units. The entire floor had 195 stocks increasing in price, 155 stocks decreasing in price and 63 stocks remaining unchanged.
HNX-Index increased by 2.51 points to 245.66 points. Trading volume reached over 69 million units. The entire floor had 105 stocks increasing in price, 64 stocks decreasing in price and 69 stocks remaining unchanged. UPCOM-Index increased by 0.67 points to 99.25 points. Trading volume reached over 66.6 million units. The entire floor had 171 stocks increasing in price, 119 stocks decreasing in price and 87 stocks remaining unchanged.
Liquidity increased sharply today, reaching nearly VND24,743 billion (nearly USD1 billion). Meanwhile, foreign investors continued to net sell for the 23rd consecutive session with a value of VND462 billion across the market. However, the high demand from domestic investors has made the negative impact of foreign investors not significant.
The proof is that despite foreign investors' net selling, the market still did not fall but remained above the 1,280 point area. Foreign investors' trading volume only accounted for around 18-20% of the total trading volume of the entire market, much lower than the period before 2020, reaching 30-50% of the total market volume.
Specifically, it is estimated that in June, the fund sold 100.4 million USD of Vietnamese stocks, accordingly, the total value of Vietnamese stocks in the fund portfolio decreased from 117.7 million USD on May 31 to 17.3 million USD on June 28. Since the beginning of the year, ETF funds have withdrawn a total of 15.7 trillion VND, reducing total assets by 21% by the end of 2023, bringing the total assets of ETF funds to 66,000 billion VND.
Most ETF funds were under pressure to withdraw capital in June, most concentrated in three large funds: DCVFM VNDiamond (VND1,070 billion), Fubon (VND1,140 billion), and iShares Frontier (VND2,360 billion), besides some funds with smaller capital withdrawals such as Xtrackers FTSE (VND183 billion), VanEck (VND132 billion), SSIAM VNFin Lead (VND117 billion).
The VNIndex’s estimated 2024 price-to-earnings (P/E) ratio is currently 11.5x, lower than the five-year average of 13.4x. With this valuation, the VNIndex’s “upside opportunity” is still bright in the second half of the year and into 2025.
The increase in basic salary for the public sector took effect from July 1; the 2% VAT reduction stimulus policy was extended until the end of the year; export activities are gradually recovering; obstacles in the upgrading process are gradually being resolved. On the other hand, rising interest rates and fluctuating exchange rates may have reflected the recent decline in stock market liquidity.
Regarding foreign capital flows, if the pressure to withdraw capital from foreign capital flows eases towards the end of the year with the expectation that the US will lower interest rates, it will create new positive momentum for the market. SSI continues to maintain the target of 1,300-1,350 points for the VN-Index by the end of 2024.
In the banking group, only 4 stocks decreased in price, while 18 stocks increased in price. The securities, insurance, oil and gas, real estate groups, etc. were also flooded with green. Notably, the VN30 basket had 25 stocks increasing in price, while only 5 stocks decreased in price.
Source: Bnews
