Experts point to 4 reasons to help VN-Index rise in Asian stocks on November 8
Experts say that if there are no unexpected negative developments in the stock market, it will continue to recover to the 1150 mark. Asian stocks fell on November 8 as investors tried to figure out the Federal Reserve’s interest rate plan, while demand concerns weighed on oil prices, struggling to recover from the previous session’s slump.
In Tokyo, Japan, the index fell 0.3% to 32,166.48 points.
On the mainland, the Hong Kong index fell 0.6% to 17,568.46 points; it fell 0.2% to 3,052.37 points.
Singapore, Seoul, Wellington and Jakarta all fell, while Sydney, Taipei, Manila, Mumbai and Bangkok rose.
There are few catalysts to boost business activity and with geopolitical tensions easing, U.S. monetary policy is in focus after the Federal Reserve said last week it would not tighten policy further.
Officials stopped short of making any promises, however, saying they wanted to see more evidence that inflation was actually trending downward and that the labor market was sufficiently weak.
Data from November 3 showed that the number of new jobs was slowing, but was not too concerning for the economy. The message reinforces the belief that the Fed is trying to give the economy a soft landing and avoid a recession.
At the same time, the Vietnamese stock market suddenly moved in the opposite direction to the Asian market. The Vietnam Index suddenly rose by 33 points, closing at 1,113 points on November 8; the HNX Index rose by 4% to 227 points. In the market, more than 870 codes have increased in price (84 codes have reached their peak price), while only 169 codes have fallen in price.
The liquidity of the three exchanges reached 21.6 trillion (about 16.5 trillion in afternoon trading), an increase of about 40% from the previous trading day. The securities and real estate groups were in high demand, causing dozens of codes to hit their caps.
|Outstanding Stock Updates from the HOSE Trading Session on November 8, 2023
Experts point out reasons for sharp rise in inventories
Expressing his views on this sudden increase, Mr. Huynh Hoang Phuong, Director of Analysis at FIDT, said that the previous negative news was strongly reflected and outstanding margin debt or other loan sources have been significantly reduced. Once the market absorbed all the above information, the market recovered as predicted.
International factors also added to the index’s upward momentum when international risks related to the conflict “calmed down” and the Federal Reserve signaled that interest rates had peaked. Overall, risk factors are strongly reflected in the market, especially psychological factors. In particular, the strong cash flow phenomenon helped the Vietnam index rise in the afternoon session due to the resonance of the above-mentioned world factors and a lot of positive domestic information.
First, the exchange rate is showing signs of cooling. It is expected that US dollar cash flow from FDI, remittances, etc. will improve from now to the end of the year, helping to support the exchange rate that is of global concern. .Recent investments.
Secondly, the market expects Congress to pass important laws related to the real estate market during this session to support the recovery of the real estate market.
Third, after the United States put Vietnam back on the foreign exchange monitoring list, it continued to determine that Vietnam did not engage in exchange rate manipulation.
Fourth, at the Congressional Question and Answer Session on the morning of November 8, Vietnamese Prime Minister Pham Minh Zheng confirmed that the focus of this policy is to support the economy.
Regarding the improvement in liquidity, Mr Phuong acknowledged that smart money has been strong net buyers since early November to date. From November 1st to 7th, net purchases of proprietary trading securities exceeded VND1.22 trillion; net purchases by foreign investors were approximately VND660 billion.
Individual investors tend to return to the market after there is an obvious recovery trend in the market. Experts believe that the cash flow of individual investors will return to the market strongly after this transaction, thus helping the market continue to recover.
|Development of VN-Index
FIDT experts assessed that the short-term bottom had been established in early November, when VN-Index recovered from 1.02 times. If there are no unexpected negative developments, the market will continue to recover towards the 1,150 point mark, then accumulate and possibly reach the 1,200-1,250 point area by the end of the year. The main factors driving the market in the coming period are based on the attractiveness of stocks after a strong correction and cheap valuations, which will be factors that attract cash flow in the near term.
VDSC: The stock market has “digested” all the bad news, and the last two months of this year are favorable investment opportunities
After the 43 million T+ shares arrived, Chairman Hoa Phat’s son (HM:) immediately made hundreds of billions in profit