The Vietnamese stock market has just had a relatively balanced trading week, with the VN-Index fluctuating within a narrow range but showing many positive signals.
The market is in the stage of exploration of supply and supply after a strong recovery from the bottom area of 1,140 points of the VN-Index. In the context of cooling down in the area of 1,200 points, combined with improved signals from foreign cash flow, showing the recovery trend is still room, with the goal of nearly 1,250 points.
Market sentiment has shown signs of improvement as cash flow begins to return. Shares that were previously under strong selling pressure such as industrial park real estate, textiles, and seafood have clearly recovered. This shows that investor sentiment is gradually stabilizing and many good stocks that were previously sold strongly are being recognized by the market for their real value.
Smart money is not withdrawing from the market, but shows signs of shifting to industry groups less affected by tariff factors, typically plastic, retail and construction. This is proof that investors are proactively restructuring their portfolios, hunting for opportunities with good fundamentals at a time when the market is accumulating.
Foreign investment funds have also reduced their selling momentum and are taking advantage of restructuring their portfolios, while increasing purchases of some stocks. This positive development is clearly reflected in the strong recovery of core stocks, especially leading banks and quality enterprises not affected by tariff risks. Some stocks have even returned to their old peaks before falling under strong selling pressure due to concerns about counterpart taxes in early April.
In the coming time, there will be many more factors supporting the recovery of the stock market. First, the valuation of stocks has been "soft". After a strong selling period, the valuations of the above industry groups have decreased sharply, with P/E currently lower than the 5-year average and trading around attractive levels for consideration of disbursement.
Another positive information supporting the market is that the Ho Chi Minh City Stock Exchange (HOSE) officially confirmed that the KRX trading system will be deployed on September 5. This is an important step forward, after many delays, especially in the context of the Vietnamese stock market expecting to be upgraded to emerging market status according to FTSE standards in September this year.
Investors have recommended that in the current context, investors can take advantage of short-term fluctuations to flexibly buy and sell with available stocks, optimize profits while still ensuring a high level of initiative when the market fluctuates.
Investors should proactively restructure their portfolios, prioritize the moderate number of stocks, focus on stocks with a solid foundation and the ability to benefit if the international negotiation process has positive results.
