At the end of the trading week, the VN-Index decreased by 94.43 points, equivalent to -5.42% to 1,646.89 points, the lowest level since mid-November. Liquidity remains almost 38% lower than the 20-week average.
The average matched volume on the HOSE floor reached 778 million shares/session, up nearly 5% compared to last week, the average trading value reached VND 22,448 billion/session, down more than 5% compared to last week.
The most notable factor in the sharp decline at the end of the week was the weakening of the group of stocks called Vingroup. In the past 2 months, when the VN-Index has remained high around 1,600-1,800 points, the role of supporting the index has largely come from this group of stocks. If excluding Vingroup, the VN-Index is actually only around 1,500 points.
The stock market has maintained a sideways situation for about 2 weeks before but there has not been enough strong information to create new momentum. Cash flow remains cautious, mainly staying on the sidelines, while large cash flows have not returned, causing the market to lack motivation to continue moving up.
In addition, the end of the year is often the period when cash flow is not active. Therefore, just a stronger selling force than usual can create a significant bearish effect.
In addition, the next week is the last derivatives expiration week of 2025. Developments in the derivatives expiration week often create certain concerns, so a part of investors tend to reduce the proportion of stocks before this period.
Experts also warn about the possibility of further market decline in the short term, especially when the accounts of some investors are likely to be called margin. In fact, in the weekend session, the accounts of many investors were called margin. And this situation may continue, so some investors will be forced to sell off.
However, the general view of experts is that this decline does not stem from macro risks, nor is it due to problems facing businesses or the economy, but mainly due to techniques and psychology. Therefore, if the market continues to decline, the decline will gradually weaken as the selling pressure is low. This is likely to be a short-term correction, not a major risk.
Investors said that after many sessions of deep decline, the valuation level of many stocks has become attractive. This could open up an opportunity for the market to trade more alertly and gradually balance from next week, when medium and long-term cash flow begins to pay attention to the group of basic stocks with good valuations.
Dr. Nguyen Duy Phuong, Investment and Strategy Director of DG Capital, recommends that most investors who have previously reduced their stock holdings should continue to maintain a low holdings in the short term. When the market falls further into more attractive areas, it is possible to review the portfolio, assess the prospects for next year and consider disbursing part of it in the medium - long term direction. In the current context of fluctuations, the priority is still to stay cautious, avoid using leverage and limit short-term transactions.
