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Experts: Opportunities abound after deep correction
Phuong Thao
Wednesday,  May 2, 2018,17:21 (GMT+7)

Experts: Opportunities abound after deep correction

Phuong Thao

HCMC – The local market is offering numerous opportunities for risk-appetite investors to accumulate new stocks as the VN-Index of the Hochiminh Stock Exchange fell a massive 10.6% in three consecutive weeks last month, according to securities experts.

Nguyen The Minh, director of analysis at Yuanta Securities Company, said that many stocks encountered heavy selloffs in April, with some banks and securities firms tumbling by 18%. The main index will therefore stage some technical rebound after the long weekend holiday but the general outlook is still negative in the near term.

According to Nguyen Ngoc Lan, head of brokerage at Agribank Securities Company, investors are divided into two main groups after the recent downturn, including bearish stock holders and those staying on the sidelines. Stock holders are at a disadvantaged position due to strong selling pressure from both local and foreign players.

Ngo Quoc Hung from Military Bank Securities Company said that April marked the strongest drop of the main index in seven years. After the holiday, the market trend remains unclear and the main index needs to find a balance point as soon as possible.

The market will see a shortage of supporting information in the next two or three weeks. Therefore, the main index may move flat with low turnover before bouncing back in the second half of May, Hung was quoted by as saying.

Minh of Yuanta Securities Company said that the VN-Index will be supported at the 975-point level. Investors should consider coming back to the market at this level as stock prices will be more affordable.

Last Friday, the VN-Index fell as much as 1.2% in the morning phase but it recovered in the afternoon to close up 0.52% in seesaw trading. For the holiday-shortened week, the index dropped 6.2%, its worst week since early February, for a third straight week of losses.

In April, the market plunged 10.6%, its biggest monthly pullback since May 2011, but was still up 6.7% from the beginning of this year. In the first quarter, the HCMC exchange index advanced by 19.3%.

A recovery in banks and brokerages led the rally. VCB, CTG, MBB and STB were among the top gaining banks while VND, VCI, HCM and SSI led a rebound for securities firms.

Leading gas firm GAS, which plummeted 17% this week, fell after the company said an expected divestment would be postponed until at least next year. Property enterprise NVL dropped 12% this week amid heavy foreign selling.

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