The trading week from March 3-7 was full of excitement with the increasing trend. At the end of the week, the VN-Index increased by 1.59% - to 1,326.05 points, the highest since May 2022, marking the 7th consecutive week of increase.
Liquidity on the HOSE floor improved significantly with the average matched volume reaching more than 1 billion shares per session, up 19% compared to last week.
The main driving force for cash flow participating in the recent period has come from policies to promote economic growth, reduce lending interest rates to promote credit.
The international stock market with many mixed fluctuations and unstable short-term performance is causing cash flow to return to the Vietnamese market.
In particular, market liquidity has clearly improved in the past month when trading sessions with liquidity of over 20,000 billion VND continuously appeared. At the same time, the number of newly opened securities accounts in February also increased sharply compared to recent months, reaching nearly 150,000 accounts.
Thereby, bringing the total number of domestic individual investor accounts to about 9.5 million accounts, equivalent to about 9.5% of the population. These are positive signals that cash flow is returning to the market. In particular, the abundant domestic cash flow is the driving force to help VN-Index surpass 1,300 points, continuing to maintain the current uptrend.
As for foreign cash flow, the net selling trend of foreign investors has been maintained since the beginning of 2025. However, in the coming time, with the expectation that the Vietnamese stock market will be upgraded to emerging market status after FTSE's approval period, foreign investors may gradually decrease net selling and return to net buying.
In the context of a significant improvement in market sentiment and a favorable macro context, investors believe that liquidity will continue to improve in the coming time. However, experts also warn about the risk of a correction.
Mr. Nguyen Anh Khoa - Head of Agriseco Securities Analysis Department said that March is the period of information gaps about enterprises when the market transfers from the 2024 financial report to the first quarter of 2025 as well as the business plan for the whole year of 2025 at the general meeting of shareholders announced in April.
In early April, the market will also receive 2 other big information.
That is the US counterpart tax decision on Vietnamese goods, which may be on February 2 and FTSE's Classification Report in the semi-annual review on April 8. These are all major events that directly affect the expectations of the stock market. The expert said that there may be signs of an adjustment in late March to suit possible scenarios later.
Mr. Luong Duy Phuoc, Director of Analysis, Kafi Securities Company, expressed the view that the market has maintained the sensitivity level of 1,300 points over the past week, despite many adjustments in the session. This shows that, in general, in terms of market sentiment, investors are confident in the ability of the market to maintain a positive trend in the context of relatively attractive market valuation with business results forecast to continue to recover in 2025.
The positive trend is expected to continue in March thanks to a number of important supporting factors.
Firstly, the prospect of upgrading the market is improving as relevant agencies show their determination to complete the remaining conditions.
Second, socio-economic data in the first month of the year shows that although exports and the private economy still need more momentum, FDI and public investment are exceeding expectations, reflecting the effectiveness of measures implemented from the end of 2024 to present.
Third, the market is experiencing new drivers, including listing plans of large enterprises such as Vinpearl, positive business prospects from enterprises ahead of the General Meeting of Shareholders, as well as stock dividends of many large enterprises, contributing to promoting liquidity and investor sentiment.
