The Vietnamese stock market had its third consecutive week of gains. After a series of adjustments at the beginning of the week, the VN-Index was able to regain its recovery momentum when it successfully tested the support level of 1,240 points.
In particular, the explosive session on December 5 was accompanied by strong consensus on liquidity, showing that investors are expecting more with the prospect of upgrading the market in the near future. Although the increase slowed down somewhat in the last session of the week, the buyers still successfully maintained the green color.
At the end of the trading week from December 2-6, the VN-Index increased by 19.68 points (+1.57%), to 1,270.14 points, surpassing the 200-session average, recording the third consecutive week of increase.
Order matching liquidity also had an explosive week, equivalent to the 20-week average. The average trading volume on the HOSE floor reached 628 million shares/session, up nearly 36% compared to the previous week, the average trading value reached VND16,027 billion/session, up nearly 32%.
Last week, leading the increase were industries such as: Insurance (+5.38%), Chemicals (+4.85%), Securities (+4.22%), Plastics (+4.04%)...
Foreign investors quickly returned to net selling status in the first week of December with a price of more than 400 billion VND, in which the focus of selling was the pair of stocks MWG and VRE.
The net selling of foreign investors is still related to the story of market upgrading. According to information from Vietcap Securities, this company had a meeting with FTSE to discuss Vietnam's progress towards the possibility of upgrading to Emerging Market by 2025.
FTSE appreciates that Vietnam has implemented the removal of non-pre-funding (NPF) margin requirements for foreign institutional investors since November. However, FTSE will continue to collect feedback from foreign institutional investors over the next few months to assess the effectiveness and stability of this new regulation.
Due to the impact of the upcoming holiday period, the base case upgrade is expected to take place at the FTSE semi-annual index review in September 2025.
Commenting on the market trend in the last month of 2024, experts predict that the stock market will not be able to break out from now until the Lunar New Year. VN-Index will likely move within the range of 1,250 - 1,300.
Strategic analysts at KIS Vietnam Securities Company (KIS) said that the market will face difficulties in December when low liquidity is showing cautious market sentiment. On the other hand, in December, cash flow focuses on year-end activities, so stock liquidity is not high. In the new year, the first month of the year, cash flow will be idle and focus on liquidity channels such as stocks and gold, helping to improve the performance of these channels.
Mr. Le Vuong Hung - Director of Individual Clients at Rong Viet Securities Company (VDS) assessed that the market from now until the Lunar New Year will not be able to break out due to pressures such as foreign investors maintaining net selling, high USD exchange rate, and rising US inflation creating pressure on interest rate management in the US. In particular, foreign investors focusing on net selling in bluechip stocks is a factor that greatly affects the market.
Mr. Hung predicts that in a positive scenario, the VN-Index will remain within a narrow range of 1,250 - 1,300. Notably, by December 31, the market will be affected by the psychology of selling off portfolios to have money to spend and to prevent unexpected information during the long holiday. However, the market is not at risk of falling sharply.
