The cooling strength of the US dollar and the recovery of global stock markets supported investor sentiment last trading week.
The VN-Index continued to decrease in the first session of the week, but gradually slowed down and rebounded when it nearly reached the support level of 1,220 points, thanks to the leadership of large-cap groups such as banking, securities, and construction.
Green dominated most of the remaining sessions. The groups that increased most notably included those that benefited from the public investment trend such as construction, building materials, and infrastructure. In addition, the oil and gas and maritime transport groups had significant increases in the last sessions of the week.
In contrast to the positive growth of the indices, foreign investors maintained a net selling trend, with the selling value increasing sharply compared to many previous trading weeks.
Excluding the deal of more than VND2,000 billion in VIC shares, foreign selling pressure mainly occurred in large-cap groups such as technology (FPT), banking (STB, CTG, VPB, VCB), and securities (SSI).
Analysts say the stock market has returned to a positive trading state. However, with the inauguration of US President-elect Donald Trump and new policies that could have an impact, the VN-Index is expected to fluctuate unpredictably this week.
Experts from VCBS Securities Company predict that the market is moving in an upward trend with low liquidity, aiming to conquer the next target of 1,260 points.
The positive point is the high market breadth, however, there is no leading stock group leading the index's increase, instead there is rotation between industry groups.
Investors need to continue to proactively realize profits with industry groups that have increased sharply in the past few sessions and can open disbursement positions with groups that are forming bottoms and showing signs of attracting the attention of cash flow such as construction materials and industrial park real estate.
Asean Securities Company also shares the view that the market will continue to have recovery sessions in the coming time, however, investors should still be cautious as fluctuations are still the main trend, as the market is in the stage of waiting for information on the upcoming inauguration day of President Donald Trump.
"However, we believe that the instability of macro factors and expectations of inflationary pressure on Mr. Trump's policies after taking office have been reflected in recent market fluctuations.
Therefore, investors can consider continuing to disburse in part with large stocks with positive fundamentals and business prospects, and have cash ready to establish a solid position when market liquidity is running out and valuations are very attractive," said experts from Asean Securities Company.
In the current context, most recommendations are given to investors to closely monitor cash flow developments, especially in pillar stocks and industry groups with positive growth stories.
At the same time, risk management strategy should still be prioritized, avoiding chasing purchases in the context of foreign investors not stopping capital withdrawal and low liquidity in the whole market.
