Last week, the stock market witnessed an unprecedented "turmoil" in history after US President Donald Trump announced the plan to impose a counterpart tax of 46% on 90% of total imported goods from Vietnam, causing the VN-Index to "evaporate" nearly 88 points.
However, it is noteworthy that in the trading session at the end of the week, bottom-fishing demand returned significantly, especially focusing on large-cap stocks in key industries such as banking, essential consumption and energy, helping the VN-Index quickly recover to over 1,200 points. This is a positive signal showing that investor sentiment is gradually stabilizing.
Experts and investors assess that the market may continue its technical recovery with target areas ranging from 1,230-1,250 points, as investors expect the parties to make initial progress in trade negotiations.
However, it should be emphasized that concerns about tariffs have not been completely relieved, so the market will continue to maintain a cautious state and the possibility of strong fluctuations is still very high.
According to Dr. Nguyen Duy Phuong, Investment Director of DG Capital, in terms of current information, Vietnam is making great efforts in negotiating with the US to reduce import tax rates to be the most positive information. The weekend break and holidays are the time for the market to re-evaluate more carefully the impacts of the tax policy on each industry group and each enterprise.
In addition, after a period of pressure to sell floor prices and decrease rapidly, this expert said that the market may narrow downward next week, or even have a technical recovery while waiting for positive information from negotiations between the two countries.
Analysts from PHS Securities Company commented that the successful maintenance of the VN-Index at the end of the week's 1,200-point mark gave a somewhat positive signal, helping to stabilize trading sentiment after a strong trading session. Cash flow is likely to continue to shift strongly and the market needs more time to balance.
PHS Securities Company believes that next week the index will probably fluctuate around 1,190-1,220 points in the coming sessions before establishing a clear trend. In case the selling pressure returns and the index loses the threshold of 1,190 points, it can retreat back to 1,160-1,180 points. In the current context, investors should maintain caution, closely monitor market developments and prioritize risk management strategies.
According to analysts at Kafi Securities Company, the current market can be seen as an opportunity to restructure the portfolio, combined with the previous adjustment of the VN-Index, some stocks have been discounted from 15 - 20% of market prices.
This can be considered an attractive discount in the short term to be considered for disbursement. However, as previously seen, the differentiation between stock groups may be stronger, leading to risks in each investment decision if not carefully considered.
During this period, screening stocks with good fundamentals, enterprises with high domestic revenue structures, and those benefiting from public investment policies or banks will be a top priority.
We believe that stocks in the banking group, food, infrastructure, and materials will recover as soon as market sentiment is stable, because the prospect of businesses is still having outstanding points over other industry groups, Kafi Securities Company expressed its opinion.
