HoSE witnessed 2 consecutive shedding classes with a lower of as much as 75 factors (Paintings)
Within the morning session of August 23, the inventory market traded with many feelings because it repeatedly corrected down and had bottom-fishing demand to slim the drop. Probably the most important is the time when VN-Index solely decreased by greater than 5 factors. Nonetheless, promoting stress elevated on most main shares resembling banks, metal, retail, seafood, industrial parks… and the one shiny spot remained in securities, making the market unable to get well. recovered after a deep drop of 45 factors within the earlier session.
Pause within the morning session VN-Index dropped 18 factors and remained above 1,300 factors. Nonetheless, within the afternoon session, the efforts of patrons didn’t repay, the actual property group was not taken benefit of, so VN-Index needed to settle for to shut at 1,298 factors, down 30.57 factors (-2, 3%) with a liquidity of VND 26,845 billion, the HoSE capitalization accordingly misplaced greater than VND 115,000 billion
So, After solely 2 declining classes (August 20 and August 23), VN-Index misplaced 75 factors and HoSE capitalization was “blown away” by 286 trillion dong, equal to greater than 12 billion USD. P/E of Vietnam inventory market as up to date by Bloomberg is at 15.65 instances.
Shares affecting the market on August 23 (Supply MBS)
So, what triggered the market to witness such robust and stunning corrections?
After peaking above 1,400 factors, the market P/E was generally over 19 instances, Vietnam’s inventory market is taken into account “not low-cost”, the valuation of many trade teams that have an effect on the index resembling Banking, metal, and securities are the teams which have introduced the VN-Index to beat one peak after one other, all of that are additionally at excessive ranges, resulting in elevated profit-taking stress.
VN-Index then had a comparatively robust correction when it returned to commerce above 1,200 factors. After that, it recovered at above 1,360 factors, right now, even many optimistic views suppose that VN-Index could conquer the 1,400 level mark.
The COVID-19 epidemic continues to be the reason for haunting the market in addition to investor psychology. Session 20/8, the rationale raised by many consultants available in the market is expounded to stronger distancing measures to regulate the epidemic in Ho Chi Minh Metropolis and southern provinces and cities. And after the robust drop, there are nonetheless many optimistic opinions once they suppose that the market will get well rapidly just like the earlier corrections.
Nonetheless, the issue that must be acknowledged is that the influence of this epidemic has been very totally different. Macro indicators after updating information in July and the primary half of August, many home and overseas organizations have lowered their GDP progress forecasts for 2021. The bottom stage recorded to date is Dragon Capital forecasts that Vietnam’s GDP could develop by solely 3.7% in 2021. Dragon Capital has beforehand lowered its GDP progress forecast for Vietnam to five% after which to three.7. %.
The epidemic can be having a robust influence on the earnings and manufacturing and enterprise actions of many companies. Some companies have introduced enterprise leads to July with income and revenue targets falling sharply. As Phu Nhuan Jewellery Joint Inventory Firm (code PNJ)This enterprise reported a lack of 32 billion dong in July, and the PNJ system quickly closed 274 shops on the finish of July.
Cellular World (MWG) additionally recorded a 29% lower in revenue over the identical interval and if the distancing measures are extended within the final months of the yr, MWG’s marketing strategy will probably be troublesome to attain.
Binh Minh Plastic (BMP code) stated that this outbreak triggered all the operation of the corporate to stay at solely 15-20% in comparison with regular in July and the primary half of August. On the identical time, the excessive value of enter supplies was imported first. That made the enterprise lose 3.7 billion dong in July.
Based on the chief of Binh Minh Plastics, the state of affairs was much more critical in August when the income was solely about 70-75 billion dong, a deep lower in comparison with the identical interval final yr and really low in comparison with the deliberate stage of 400-500 billion dong per yr. month.
Thanh Cong Textile (code TCM) additionally recorded a month with a 47% lower in revenue after tax to VND 15.Three billion primarily because of the implementation of the hole, so labor productiveness within the garment trade didn’t meet the plan, resulting in low gross revenue margin in comparison with the identical interval final yr. previous to….
In a current sharing with BizLIVEBased on Mr. Bui Van Huy, a securities professional, the macro outlook will not be shiny, the valuation will not be low-cost, the trade with year-end prospects is dear… so for long-term buyers, the protected zone should be lower cost vary. The 1,200-1,250 level zone has many alternatives to look.