January 30, 2024
HÀ NỘI – The Vietnamese market is expected to continue recovering this week and in the near future with the 1,170-point area providing support.
The benchmark VN-Index on the Hồ Chí Minh Stock Exchange rose 0.45 per cent to close at 1,175.67 points.
The index had declined 0.49 per cent last week.
According to Dragon Capital Securities Corporation (VDSC), the market had shown a slight rebound on Friday after three consecutive correction sessions. Liquidity remains low with narrow price fluctuations, indicating that there is some supportive movement in capital flow, but caution and exploration of supply sources still persist.
“However, the current upward signal indicates that the 1,170-point area is still supporting the market. It is expected that the market will continue to be supported and gradually recover in the near future,” it said.
“Therefore, investors can expect the market’s ability to support and recover. Currently, priority should be given to stocks that are showing good signals from the support zone to hold or accumulate.”
According to Saigon-Hanoi Securities Corporation (SHS), the market performance last week indicated strong differentiation with short-term capital flows showing positive rotation within each group and stock. This has led to significant price increases for many stocks during the announcement of Q4/2023 business results.
Prior to the release of positive Q4/2023 business results, the industrial real estate stock group traded actively, with stocks such as The Đồng Nai-based Industrial Urban Development JSC No 2 (D2D), increasing by 15.22 per cent, Sài Gòn VRG Investment Corporation (SIP) increasing by 10.92 per cent, and Nam Tân Uyên Joint Stock Company (NTC) increasing by 4.7 per cent.
Experts from VPS Securities Corporation (VPS) said that despite the challenges, the industrial real estate sector is experiencing favourable growth conditions.
According to VPS experts, the industrial real estate stock group still has strong prospects for positive growth. The occupancy rate of industrial parks is forecast to be high, and rental prices are expected to continue increasing. FDI capital flow remains positive, supported by favourable policies and improved transportation infrastructure, especially in the southern region. Many foreign businesses choose Việt Nam as a production location, and FDI in industrial parks and economic zones account for a significant proportion.
According to experts from MB Securities Corporation (MBS), by the end of 2023, the total area of industrial land in the country reached 89,200 hectares, a 1.5 per cent increase compared to 2022, with the majority of growth occurring in the northern market.
The total area of leased industrial land reached approximately 51,800 hectares, a 5.7 per cent increase compared to 2022, with an occupancy rate of around 57.7 per cent. Specifically, the occupancy rate of operational industrial parks reached about 72.4 per cent. The rental price in the southern region remained stable at US$168 per square metre, while in the northern region, it increased by 10 per cent compared to 2022, reaching $123 per square metre.
MBS also believes that Việt Nam has competitive advantages due to signed trade agreements, and attractive labour and electricity costs. Upgrading the Việt Nam-US relationship to a comprehensive strategic partnership opens up new opportunities for Vietnamese businesses to attract investment in high-tech development.
The banking stock group, after a period of strong price increases, mostly faced correction pressure and exhibited narrow fluctuations with maintained high liquidity, albeit slightly lower than average. For example, Ocean Bank (OCB) decreased by 2.67 per cent, Bank for Investment and Development (BID) decreased by 1.81 per cent, and Eximbank (EIB) decreased by 1.76 per cent. Among the gainers were HDBank (HDB) increasing by 1.67 per cent, and Saigon-Hanoi Bank (SHB) increasing by 1.65 per cent.
According to SHS experts, after a positive week of price increases, the VN-Index maintained a positive sentiment last week, starting the week by continuing to rise to around 1,190 points. Subsequently, the VN-Index experienced four consecutive correction sessions, mostly influenced by the banking sector after several weeks of strong price increases in the overbought zone, with decreasing liquidity during the correction. VNS