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Prudent investment needed in stock market

By Lê Thị Anh Thư / DA NANG Today
April 13, 2022, 17:40 [GMT+7]

Recently, the stock market continuously recorded a lot of recently-released information, including stock market manipulation cases, which is affecting many groups of stocks. Such a concerning fact now makes investors very cautious about their upcoming investment moves. Experts and investors, however, believe that the impact of recent adverse impacts would not be too large and they may only take place in the short term.

The stock market opened relatively positively right after the recently-concluded holiday break for the Hung Kings Commemoration Day but the indexes quickly dropped significantly.

As recorded in the morning of April 12, on three main stock exchanges, namely VN-Index, HNX-Index and UPCoM-Index, the red coluor dominated most of the industry groups.

According to experts, investor will monitor a few sessions amid information of deep concern prevailing the stocks of real estate and banking groups.

Mr. Lam Duc, a resident in Nai Hien Dong Ward, Son Tra District, a stock investor said: "Investors are now very cautious. In the short term, they are suffering a lot when the stock price drops continuously or there are no any progress signals. This results in a psychological matter. However, groups of stocks with fundamental factors that have positively accumulated over the past time will not be affected too heavily”.

Meanwhile, Mr. Nguyen Anh Tuan, an investor in Hoa Cuong Bac Ward, Hai Chau District said, the group of real estate stocks is being adversely affected by the fact that most of the big real estate businesses on the floor have raised capital from bonds. But the information only affects in the short term. So, real estate stocks with effective project deployment are expected to record growth in the long term. In general, investors are highly recommended to continue to expect the uptrend of the market, giving preference to stocks with good valuation, positive accumulation background, attracting cash flow, and they should be highly cautious against stocks with high risk.

Mr. Nguyen Phan Tuan Nguyen, representative of the Da Nang branch of the FPT Securities Joint Stock Company acknowledged that there are always positive and negative developments in the stock market and investors also need to map out the right investment approach.

For new investors at this time, it is necessary for investors to consult experts with rich experience and in-depth knowledge in the field of securities investment. Before investing, it is necessary to gain a deep insight into this lucrative yet challenging market, especially learning more about the company’s history, their leadership and the potential of the industry. The more carefully the investor considers, the more risk factors facing them are eliminated.

Although the market was affected by many negative impacts, supporting factors such as the first quarter reporting as well as the ongoing shareholders' meeting season are still the main driving forces supporting the stock market.

According to a report released by the VNDIRECT Securities Joint Stock Company, the business results of listed companies in the first quarter of 2022 was positive, benefiting from the resumption of most economic activities as well as the release of economic stimulus package.

In particular, the securities, retail, chemical, fertilizer and seafood industries recorded high profit growth in the first quarter of this year.

According to Mr. Nguyen Trung Kien, the Director of the central region branch of the Agribank Securities Joint Stock Company (Agriseco) said, the General Statistics Office of Viet Nam has announced socio-economic statistics for March and first quarter of 2022 with a lot of positive information such as GDP growth reaching 5.03% over the same period in 2021.

Also, indicators that predict economic growth soon such as the Purchasing Managers Index (PMI) and the industrial production index (IPI) are recovering actively towards the GDP target of 6.5 - 7%.

In the component indicators, the General Statistics Office of Viet Nam also said that retail consumption is bouncing back, whilst trade surplus and public investment is on upward trend.

Given expectations that the COVID-10 pandemic would be completely controlled, more businesses would boost their production and business activities and consumer demand would be on track of recovery, Agriseco assessed that the stock market would continue to be an attractive investment channel.

At this time, the financial, banking and securities industries will maintain a positive growth trend. The biggest risks of the current market are inflation and soaring commodity prices, which may adversely affect the basis of fiscal and monetary policy.

The case of much-higher-than-expected inflation may affect the interest rate level as well as the cash flows channeled into the stock market.

Reporting by MAI QUE  - Translating by A.THU

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