Decoding the phenomenon of sudden liquidity, what ought to traders do after the sell-off session of two billion USD?

On the inventory market within the week of August 16-20, traders targeted their consideration on the final session of the week when the VN-Index adjusted down sharply by 3.3% – changing into one of many inventory indexes that fell essentially the most. Asia in session 20/8. Particularly, the sell-off and bottom-fishing psychology repeatedly appeared additionally helped the liquidity improve to a file stage of 48,620 billion dong (2.1 billion USD), one and a half instances larger than the earlier session, of which HoSE reached a file stage. over 38,000 billion dong, exhibiting very robust promoting strain.

Deciphering the sudden liquidity phenomenon, Mr. Huynh Minh Tuan – Brokerage Director of Mirae Asset Securities Firm stated that that is the results of the agglomeration of the dashing data flows, particularly the adverse affect available on the market. from rumors unfold concerning the sophisticated epidemic state of affairs in large cities like Ho Chi Minh Metropolis or Hanoi, insurance policies to tighten social distancing… creating confusion for traders to push the frequency Transactions elevated clearly, particularly particular person traders – who account for 80% of buying and selling quantity – have been enormously affected.

There was nearly no new money stream out there, however the principle stimulus was the massive buying and selling frequency of particular person traders. In different phrases, nearly all of traders within the final session of the week had surfed throughout a powerful drop to create a file of liquidity.

Based on statistics on HoSE, particular person traders internet purchased greater than 5,800 billion dong within the session 20/8. Because of this shopping for power, though home and international organizations maintained internet promoting, the money stream of the entire market nonetheless recorded a constructive state. Whereas the one who took the chance within the session with a pointy drop as typical was the self-trading group with a internet shopping for of practically 720 billion dong.

  Decoding the phenomenon of sudden liquidity, what should investors do after the sell-off session of 2 billion USD?  - Photo 1.

(supply: FIDT)

Mr. Huynh Minh Tuan stated that it is vitally tough for the market to file this peak of liquidity, as a result of that is because of the elevated buying and selling frequency, not the intrinsic cash power of the market. Within the subsequent phases, liquidity can be round VND 20,000 – 30,000 billion and steadily improve with the variety of new traders with extra constructive macro-factor expectations.

Within the present market, the present P/E of VN-Index is recorded at 16.Three instances and nearly 70% of industries are beneath this common P/E. As well as, in response to the statistics of enterprises listed on the inventory change, the biggest proportion of revenue contribution among the many complete 19 sectors of the market within the second quarter was: banks accounted for 31.55%; actual property contributed 14.5%, primary assets accounted for 12.99%, industrial providers contributed 6.9% and electrical energy, water & petroleum recorded 5.3%,

The 5 key sectors of this market accounted for 75% of all the market’s revenue, and simply trying on the profitability of those industries, the general market state of affairs could be deduced.

  Decoding the phenomenon of sudden liquidity, what should investors do after the sell-off session of 2 billion USD?  - Photo 2.

What ought to traders do after the sell-off session?

Commenting available on the market within the third and fourth quarters of 2021, an professional from Mirae Asset stated that the extended distancing coverage will cut back financial actions and have an effect on the entire financial system, thereby making P /E ahead in 2021 can be larger.

Accordingly, the market is now ready for the reply to when this 4th wave of the epidemic can be managed. With stronger measures, particularly the pace of vaccination is being pushed to the best, Mr. Tuan stated that the chance that Ho Chi Minh Metropolis and the southern provinces can minimize the outbreak on September 15 is kind of excessive. Due to this fact, the market nonetheless has the prospect of a powerful restoration within the subsequent 4th quarter.

It is strongly recommended that particular person traders, for the second, ought to relax, re-evaluate their portfolio within the path that the business will get better strongly within the fourth quarter and profit, particularly from exports or excellent inner components. similar to wholesome finance, important items and receiving funding capital.

Phuong Linh

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