Sitting at dwelling ‘pours’ cash into shares

Consultants stated that so long as folks have to remain at dwelling, the cash poured into the inventory market won’t lower.

Whereas most non-essential gadgets have restricted gross sales, or can’t be shipped, there’s one factor that’s nonetheless extraordinarily energetic in day by day buying and selling, even much less the space, which is the inventory market.

Particularly, final week’s buying and selling session, on August 20th, was an explosive session with a buying and selling worth exceeding 45 trillion dong, equal to almost 2 billion USD on the 2 exchanges.

The attention-grabbing factor is that even in the course of the time of social distancing, the inventory market repeatedly had buying and selling periods that attracted a file sum of money, wanting again on the previous time, VN-Index has additionally repeatedly peaked. new.

Explaining this purpose, Mr. Tong Minh Tuan, a securities analyst, stated that money stream performs a key position in making the market defy, not essentially the well being or prospects of the enterprise.

In different phrases, when folks do not know the place to spend their cash, folks will sit at dwelling and play the inventory market.

Mr. Tuan forecast: “So long as there’s social distancing and other people have to remain at dwelling, the market won’t lower. However when the hole is eliminated, the money stream will progressively withdraw from shares, and the market will enter a powerful downtrend. After that, the market will want a while to get well, possibly subsequent yr’s story.”

Stay at home and pour money into stocks - Photo 1.
Mr. Tong Minh Tuan.

Till the financial locomotive of the nation, Ho Chi Minh Metropolis, ends the space, the economic system is taken into account to return to regular operation. The actions of the economic system are restored, together with the demand for cash to pay for these actions will increase once more.

Nonetheless, securities knowledgeable Tong Minh Tuan additionally stated that the well being of the economic system might be enormously broken after the space, there might be many liquidity breaks that can make the overall property and the sum of money financial actors will decline after the pandemic.

“The lower within the complete sum of money of every topic together with the necessity for cash to function once more will certainly trigger money stream from securities to stream by, and that is when the inventory market will enter a down cycle,” stated Mr. Tong Minh. Tuan stated.

One notice is that Vietnam’s inventory market has additionally elevated rather a lot over the previous yr, whereas the economic system is now simply beginning to endure due to the epidemic. Subsequently, the market’s actions usually are not anticipated to be very constructive from now till the tip of the yr.

This divergence places the market vulnerable to falling at any time. The “sharks” perceive this very properly, so they are going to do every little thing to guard the outcomes. In response to Mr. Tuan, it is a level that new traders ought to take note of and apply browsing strategies.

Ending the final buying and selling week, from August 16-20, VN-Index dropped 27.62 factors (2%) to 1,329.43 factors. Nonetheless, market liquidity continued to be greater than the 20-week common. Buying and selling worth on HoSE elevated by 18.7% to 141,420 billion dong, equivalent to buying and selling quantity up 14.2% to 4.219 billion shares.

Particularly within the final session of the week of August 20, the liquidity on the 2 exchanges reached a brand new file excessive of 45.40 trillion dong on the 2 exchanges. HoSE additionally set a brand new file with a buying and selling quantity of greater than 1.1 billion shares, a lot greater than the earlier session in addition to the typical of 20 periods (651.6 million items).

The extension of social distancing time in lots of provinces and cities has made traders frightened in regards to the chance that it’s going to have an effect on the enterprise actions of listed corporations, thereby probably inflicting promoting stress to proceed to extend. elevated sharply within the first periods of subsequent week. Bao Viet Securities Firm forecasts, VN-Index might retreat to check the help space of ​​1,280-1,300 factors within the quick time period.

In response to SSI Securities Firm’s forecast in regards to the market pattern subsequent week, the VN-Index has turned down with the help space of ​​1,320-1,300 factors, whereas the 1,350-1,354 factors is the resistance zone for the restoration periods. in need of the index.

Tuan Nguyen