In a plunging market, the VN-Index dropped to 1,220 points, with almost 800 stocks experiencing sharp declines. However, by the end of the trading session on March 18, bottom-fishing helped the VN-Index narrow its loss to 1,243.56 points (-20.22 points); HNX dropped 2.86 points to 236.68 points while Upcom fell 1.03 points to 90.32 points.
The market was in the red with a record liquidity of nearly VND 48 trillion, with HOSE alone witnessing trading value reaching an all-time high of over VND 43 trillion and over 1.7 billion shares changing hands.
Notably, despite the volatile market with a sharp decline in a number of stocks, real estate stocks continued to shine with many stocks hitting the ceiling price such as VRE, DPG, DIG, TCH; some other stocks also increased significantly like SCR, HQC, VIC, DXG…
Many other sectors such as banking, securities, oil and gas, steel, and port shares were sold off after a period of strong gains.
What factors helped real estate stocks “rise” on a turbulent market day? Mr. Nguyen Thanh Lam – Director of Individual Client Research and Analysis Division, Yuanta Vietnam Securities Company, believes that Q1/2024 business performance of real estate enterprises is expected to show a strong recovery compared to the same period last year. Q2 is expected to enter the season of project launches with a number of optimistic expectations for this year, improving from the dim picture of previous years. Looking from the general market perspective, the real estate group has not increased significantly compared to the VN-Index in recent times.
According to experts, there is a flow of money in the stock market circulating among different sectors, of which the next sector could be real estate as its stocks have not increased much. Mr. Vo Kim Phung – Deputy Head of Analysis Department, BETA Securities Company, said that recently there have been consecutive meetings by regulatory agencies to remove difficulties for the real estate market, which has had positive impacts on the market. At the same time, money is flowing from profit-taking in sectors that have seen strong gains to those that have not increased much, especially real estate.
“Although the residential real estate sector is not particularly active, stocks might run up on expectations, especially stocks of companies with a solid foundation,” Mr. Phung said.
Looking at the overall market, BETA’s experts believe that in recent trading sessions, technical indicators have not really provided positive signals to suggest that the risk of correction is still present. However, the level of differentiation is quite high as money continuously flows between sectors. In the short term, the risk of a double top pattern still exists as the VN-Index struggles near the strong resistance band of 1,280 – 1,300 points.
The risk will increase if money becomes cautious as the exchange rate rises rapidly and the State Bank withdraws money through treasury bills. Last week, the central bank withdrew nearly VND 75 trillion. The scale and time of net withdrawal were not disclosed by the authorities, but many experts believe that the impact on the market will not be as strong as in October and November 2023…
