Stock market sees positive signals in first trading sessions of 2023

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	Restore confidence, ensuring healthy development of stock market
	Commentary on stock market in the last month of the year

The Stock market has undergone a gaining week, setting new expectations for 2023. Photo: ST

An impressive recovery week

The benchmark VN-Index saw an impressive recovery week with the green spreading across the market from the first session of 2023, helping the general index be more positive and closing at the strong resistance area of 1,060 points at the weekend session when the short-term profit-taking pressure appeared.

The market witnessed strong performance with an improvement in liquidity in the first trading session on January 3. Accordingly, the benchmark VN-Index rose over 36 points or 3.66% to 10,439 points.

Meanwhile, the HNX-Index also saw positive sessions and closed at 212,55 points, up 7.25 points (3.53%). According to experts of Vietcombank Securities JSC (VCBS), this is likely to forecast a better year for the stock market. The market maintained the increase in the trading session on January 4 and 5 with the VN-Index rising 2.45 points, or 0.23% to 1,046.35 points on January 4 and closing at 1,055.82 points, up 9.47 points on January 5. In the weekend session, the market started to decrease.

During the last week, 18 out of 21 commodity groups recorded price increases. Petroleum shares and stock are two industries with the best recovery with 9.87% and 7.8%, respectively. In addition, the demand for shares of banks with high capital liquidity in the VN30 basket also created a positive premise to improve the general index. Further, the net selling of foreign investors reached VND350 during the weekend session. At the end of the week, the benchmark VN-Index rose 44% or 44.35 points to 1,051.44 points

According to Vietnam Construction Securities Joint Stock Company (VNCSI), the stock market had a positive session, setting new expectations in 2023. Vietnam’s stock market recorded an impressive growth of the VN-Index in the first trading sessions. The market liquidity is a bit higher than the previous week with an average value of VND9.660,90 billion per/session (up 1.63%), equivalent to 545.60 million shares (up 1.02%) per session. The liquidity witnessed a slow recovery but reached its highest in the weekend session. This showed that investors are still cautious before any adjustments.

Open attractive long-term investment chance

Experts said that the positive developments of the market in the first week of the year were affected by some notable national and international information such as the launching of 12 component projects of the North-South Highway Project phase 2 and the movement of peak emulation month of public investment disbursement, the unexpected second National Assembly’s meeting; and the re-opening of the Chinese market.

According to SHS company, the stock market in the first sessions showed positive signs from net buying of the foreign sector, and the active movement of some key stocks including banks.

It can be expected that the VN-Index will move out of the downtrend in the near future. However, the market may not enter the uptrend in the short term, the market will violate in the recovery waves with narrowing margins before entering the uptrend period. Thus, investors can make short-term investments in the market.

For medium and long-term views, SHS experts said that the year of downtrend made the stock price level decline and more attractive in 2023 despite challenges such as high interest rates, the running out of sources of cheap currencies and the gloomy global economy.

The stock price level has been discounted to the current attractive level, which will open up investment opportunities for the medium and long-term. The selection of a portfolio of stocks for medium and long-term investment should be carried out carefully. Investors should focus on good fundamental stocks, leading stocks in the industry and potential stocks.

Mr. Do Bao Ngoc, Deputy General Director of VNCSI, said that the low valuation is also a factor that can push the cash flow back to the stock market in 2023.

Macroeconomic stability helps push stock market development: official

“In 2022, the market is in the low valuation zone and the price is attractive enough. When the economy improves and cash flow returns from both domestic and foreign investors, in 2023, it is expected that the market will have a better chance to recover," said Mr. Ngoc.