The stock market bulletin records notable developments, providing investors with multi-dimensional information about trends and growth potential. Below is a summary of some of the highlights and analysis of the market situation in the form of a bulletin.
Cash flow cautiously waits for short-term goods, liquidity weakens
A number of stocks bought at low prices are expected to be in the account. Cash flow still shows caution and patience, although it is not clear how much of the stocks are for short-term trading. Order matching liquidity on the HoSE floor has recorded a significant decrease, about 6%, with the majority of stocks remaining in a narrow range.
- Signal: Neutral
- Impact on: VIC, VHM, VPL, VRE, VCB, BID, FPT, CTG, TCB, VPB
- Comment: The weakening liquidity and the wait-and-see mentality of cash flow indicate that the market is in the accumulation or slight correction phase. Investors should prioritize medium and long-term positions and implement strict risk management by diversifying their portfolios. This is a good time to observe further developments and wait for clearer signals on cash flow and liquidity before making large disbursements.
Global cash flows into US stock ETFs, net withdrawal from Vietnam
Net capital flows into US stock ETFs continued, reflecting investors’ expectations of positive prospects from US-China trade developments and the possibility of the US Federal Reserve (Fed) cutting interest rates. In that context, the Vietnamese market witnessed a net withdrawal from foreign investors.
- Signal: Positive
- Impact on: FTSE, MSN, SSI, CTG, FPT, TCX, GEX, MSCI
- Comment: The global shift of money to US stocks reflects optimism about the large economic outlook and loose monetary policy. Although Vietnam is under pressure from foreign investors to withdraw net capital, this may create buying opportunities for domestic investors in fundamentally sound stocks as valuations become more attractive. It is necessary to closely monitor exchange rate fluctuations and domestic monetary policy to assess the long-term impact on the market.
Losing the pillar, VN-Index "missed" the opportunity to conquer the 1700 point mark
The leading stocks could not maintain balance, especially the weakening of the banking group. This caused the score to drop significantly. Combined with the amount of bottom-fishing goods that had previously returned to the account, the cash flow tended to retreat, waiting for a buying opportunity at a more attractive price.
- Signal: Neutral
- Impact on: VIC, VHM, SHB, GVR, LPB, VPB, TCB, TPB, BID, VIX
- Comment: The fact that VN-Index could not maintain its upward momentum and pillar stocks weakened shows that profit-taking pressure is present, especially when the amount of previously bottom-fishing stocks is back in the account. Investors should prioritize a defensive strategy, reduce the proportion of stocks that have increased rapidly and can consider gradually accumulating stocks with good fundamentals when prices adjust to the support zone. This is a period that requires strict risk management and patiently waiting for clearer signs of recovery of cash flow.
What do we see from securities company IPOs with high valuations?
TCBS’s IPO recorded a P/B of 3.3x, significantly higher than the industry average P/B of 2.2x. However, the offering still attracted great interest, with the subscription rate exceeding the offering volume by 2.5 times.
- Signal: Neutral
- Impact on: TCBS, VPS, MSB, LPBS, ACBS, HDBS, MSCI, VIX, SSI, HCM
- Comment: The high valuations of securities company IPOs like TCBS reflect the market’s high expectations for the growth potential of the financial services industry. However, investors need to carefully assess the risk of valuation, especially when compared to the industry average P/B. The right strategy is to focus on companies with sustainable business models, good governance and the ability to generate stable profits in the long term, instead of chasing short-term excitement.
US stocks weaken after Fed meeting, oil prices rise on trade optimism
Investors expressed disappointment after Federal Reserve Chairman Jerome Powell signaled the possibility of the Fed not cutting interest rates at its December meeting. Meanwhile, oil prices rose on optimism about trade prospects.
- Signal: Positive
- Impact on: CNBC, APEC, WTI, EIA, OPEC
- Comment: The negative reaction of US stocks after the Fed's statement shows that the market is still very sensitive to monetary policy, especially expectations of interest rate cuts. Global investors need to closely monitor macroeconomic data and signals from the Fed to adjust their strategies. Meanwhile, rising oil prices show that the global economic outlook still has bright spots. For the Vietnamese market, it is necessary to consider the indirect impact of global monetary policy and commodity prices.
Fed cuts interest rates but Powell “hesitates” about December meeting
The US Federal Reserve (Fed) has decided to cut interest rates for the second time in a row. However, Fed Chairman Jerome Powell expressed uncertainty about whether to continue cutting interest rates at the December meeting.
- Signal: Neutral
- Impact on: FOMC, CME
- Comment: The Fed’s decision to cut interest rates is supportive of the economy, but the hesitation about what will happen next has created uncertainty in the market. This may make investors more cautious in the short term, especially with expectations of a prolonged loose monetary policy. The right strategy is to focus on defensive assets and businesses that are able to withstand interest rate fluctuations. Economic reports and comments from Fed officials should be closely monitored.
Proposal to remove regulations on profits for 2 consecutive years to bring startups and technology businesses to the stock exchange
Market participants have proposed removing the requirement of two consecutive years of profits and no accumulated losses, which is aimed at making it easier for technology startups and innovative companies to access the capital market.
- Signal: Neutral
- Impact on: VCB, BVH, DPM, PVI, POW, OIL, BSR, VRE, TCBS, VPS
- Comment: The proposal to remove rigid profit conditions shows the market's efforts to facilitate access to capital for startups and technology companies, promoting innovation. If passed, this will be a great opportunity for venture capitalists and those who want to invest in high-growth companies. However, other screening and risk management mechanisms are needed to protect investors from potential risks of young businesses.
Cost advantage is no longer a long-term "weapon" of industrial real estate.
The industrial real estate sector is entering a new phase of growth, fueled by continued inflows of high-quality FDI. However, this opportunity comes with challenges, requiring Vietnam to shift from its low-cost advantage to improving the quality of infrastructure, human resources and institutions to retain long-term investors.
- Signal: Neutral
- Impact on: FDI, VIPF, JLL, FTA, CHANGE, SANG, IZ
- Comment: The change in the competitive dynamics of industrial real estate shows that the industry is developing in a more sustainable direction, focusing on added value. Investors should pay attention to businesses that are capable of developing high-quality infrastructure, with a clear strategy on sustainability and innovation. In the long term, this is a positive trend, but in the short term, businesses that have not adapted in time may face challenges. It is necessary to carefully consider the financial capacity and strategy of each company.
The stock market news bulletin aims to provide investors with an overview, while emphasizing the importance of careful analysis before making investment decisions. Following market news from HVA The provision will help investors seize opportunities from short-term fluctuations and adjust their portfolios in line with market trends.
