Vietinbank Securities has published the Weekly Investment Strategy Report on 27th November, 2023 with the executive summary presented below:
- OPEC+ has announced the postponement of its ministerial meeting from November 24th to November 30th, which has temporarily halted the recovery of global oil prices, maintaining them around $80 USD as of November 24th. The deferred meeting also indicates internal tensions among the alliance members.
- Meanwhile, the Chinese government is considering injecting 1 trillion CNY to rescue the real estate market for the renovation of slums and affordable housing in the country. If implemented, this plan would mark a significant step in the authorities’ efforts to prevent the largest real estate downturn in decades.
- The VN-Index in the past week recorded a decline of 0.51% as selling pressure continued to increase sharply in the face of a series of negative information related to violations at SCB and Tan Hiep Phat, and the P/E ratio of some industry groups reached levels equivalent to the period in 2022, causing the VN-Index to drop sharply to the 1,067-point mark at times. However, bottom-fishing activities were strong, especially in the VN30 group, helping to narrow the decline towards the end of the week. Meanwhile, money continued to flow into the market in a stable manner, with liquidity and average trading value per session reaching values of 897 million shares and 18,396 billion VND, respectively. It is worth noting that selling pressure showed strong signs of increase in the communication and financial services stock groups, with decreases of 11.03% and 5.26%, respectively.
- The VN-Index may continue to face prolonged corrective pressure; whether the index maintains the support level of 1,082 points will determine the market’s next trend. Investors are advised to continue monitoring and wait for a stable development of the VN-Index. They might consider increasing their holdings if the support level of 1,082 is maintained. On the contrary, if the current corrective pressure increases, and the VN-Index closes below the support level of 1,082 points, investors are recommended to close positions and reduce holdings, considering the possibility of the index revisiting the November support level of 1,020 points.