Recovering almost all the points lost in the first session of the week, VN-Index had an impressive recovery in the trading day of February 4. The market recorded a very positive trading session when VN-Index closed at 1,264.68 points, up 11.65 points (+0.93%). The strong increase throughout the session helped the index completely erase the decrease of the previous session, while maintaining a stable green color from the beginning to the end of the session.
Leading the increase are large-cap and highly sensitive groups to the market such as banking, steel, construction, securities... showing that positive sentiment is gradually regaining the upper hand.
In addition, liquidity was also a notable highlight yesterday when the matched volume far exceeded the 20-session average (+36.2%), signaling the return of large cash flows. With the support from liquidity, yesterday's increase reinforced the uptrend established in the two previous Lunar New Year holiday sessions and broke the negative signal of the downtrend on February 3.
However, the pressure from foreign investors has not shown any signs of abating. Yesterday, foreign investors continued to net sell strongly with a value of up to VND946.59 billion on the HOSE. However, the strong recovery of the market along with increased liquidity shows that investor sentiment is gradually stabilizing, despite the net selling pressure from foreign investors.
If the cash flow continues to remain high and the profit-taking pressure is not too great, the VN-Index is completely capable of heading towards a higher resistance zone in the coming sessions. After a period of decline, the VN-Index is returning to a short-term uptrend above the support zone of 1,250-1,260 points. Opening up the prospect of returning to the 1,280-1,300 point zone, the upper limit of the medium-term accumulation price channel of 1,200-1,300 points that has lasted throughout the past year.
Analysts at Asean Securities Company believe that the Vietnamese stock market will continue its recovery trend. However, the possibility of fluctuations due to the impact of trade tensions and countermeasures from US rivals, especially China, cannot be ruled out.
In the medium and long term, the domestic market has many supportive conditions such as the prospect of market upgrade and good growth potential of the domestic economy. At the same time, the decrease in DXY will still be an inevitable trend in the environment of loose monetary policy, capital flows will gradually return to emerging investment markets with high growth potential like Vietnam.
Asean experts said that 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.
SHS Securities Company gives a short-term view that the market is under a lot of pressure from the world market when technology - telecommunications stocks are under pressure to adjust and sell strongly with liquidity increasing quite suddenly after a period of strong price increase.
However, the intrinsic quality of the market is still improving well, many codes and groups of codes have quite outstanding growth in business results in the fourth quarter of 2024. Many codes are at relatively attractive prices compared to the intrinsic value of the business and medium and long-term growth prospects, and can be considered for accumulation.
Investors maintain a reasonable proportion. Investment targets are stocks with good fundamentals, leading in strategic industries, and growing beyond the economy.
