Stock market turns attractive in a new cycle

3 min read

The stock market is currently maintaining an uptrend as well as attracting cash flow, making many stocks have outstanding growth. Notably, VN-Index had a successful test session of the psychological support level of 1,450 points (November 11) with a strong gaining session right after. This shows that the market is becoming attractive in a new cycle.

The stock market turns attractive in a new cycle. (Photo: Int)

The stock market closed a volatile week when it surged to a new peak (1,473.37 points) with blue and purple dominating on all 3 exchanges. In which, the contribution mainly occurred in the large-cap group when the VN30 group increased by nearly 14 points (0.9%) with 19/30 stocks increasing. Topping the list of increasing prices is PNJ with a gain of over 5%. Followed by CTG and FPT with an increase of over 2%. There are quite a few bank codes in this group showing green color over 1% such as TCB, MBB, STB, TPB, ACB, HDB.

Small and medium-sized stocks continue to “stand firm” to contribute positively to the index as well as attract cash flow. VNMidcap and VNSmallcap indexes increased by 41 points (2.06%) and 23 points (1.13%) respectively, notably real estate codes such as CEOs increased the ceiling for 6 consecutive sessions, matching 4.46 million units; VC3 increased by 5.1%, NRC increased near the ceiling price of 9.4%, matching 1.1 million units; L14 up 7.7%; HUT rose 4.4 percent, matching 2.9 million units. In addition, the group of financial stocks also flourished with many codes in the securities and banking sectors with a fair increase of 2-5%.

“VN-Index will continue to gain and challenge the strong resistance zone of 1,470-1,510 points. Large-cap group is creating attractive cash flow again thanks to attractive valuation, while cash flow is still concentrated in the group. mid-cap stocks,” said Bao Viet Securities Joint Stock Company (BVSC).

Previously, the stock market had partly reflected the downside risk related to the fourth Covid-19 wave in October, causing the market to move sideways before the resistance of 1,400 points.

In November, the stock market turned its focus to the story of business recovery in the fourth quarter of 2021, as well as the business outlook of next year. The uptrend has gained momentum from the last 3 sessions of October, thereby setting a new record high in terms of liquidity as well as points.

Currently, the market is continuously receiving a lot of supportive information from the faster vaccine deployment and the domestically produced vaccines being put on the market earlier than expected. Along with that is the process of reopening the economy.

In addition, information about the stimulus package will also help restore the economy, open capital flows and stimulate consumption after a prolonged period of the epidemic, increase public investment to attract FDI inflows.

This is the new growth driver of the market in November when the VN-Index continues to maintain its excitement thanks to the support of cash flow of individual investors in the context of low deposit interest rates at present.

On this basis, VNDirect Securities (VND) also raised its forecast for EPS growth of listed companies in 2021 to 40% compared to 2020 (from 33% forecast last month).

Rong Viet Securities Joint Stock Company (VDSC) made a recommendation: the stock market maintained its trend as well as attracted strong cash inflows, leading to many outstanding growth stocks. Investors should hold stocks that are trending well and should buy stocks during the start of growth to increase their profits when the market is favorable.

Source: stockbiz.vn – Translated by fintel.vn