The market had a positive week of gains accompanied by improved liquidity. However, cash flow was still mainly focused on short-term trading in mid- and small-cap stocks. At the end of the trading week, the VN-Index increased by 17.64 points (+1.4%), to 1,275.14 points. Liquidity also increased quite positively with trading volume increasing by 21.2% compared to the previous week.
On the HOSE, the top stocks with the strongest growth are still those in the mid- and small-cap group, with high speculative value. Among them, TDH recorded its second consecutive week among the stocks with the strongest growth. Last week, this stock increased by more than 12%.
On the other hand, many stocks are more notable. Among them, APG shares plummeted after the announcement of closing the Ho Chi Minh City Branch and Transaction Office 132 Mai Hac De (Hanoi), and said that this move is part of the company's restructuring plan. Along with that, APG also continuously registered to sell large volumes of LDP and GKM shares it is holding.
DXG shares were among the other names that fell significantly, after the plan to issue 150 million shares to shareholders at a ratio of 24:5, at VND12,000/share. Related shares DXS were also implicated and under pressure to fall. Meanwhile, HVH shares were heavily booked after jumping more than 20% last week.
Attention was drawn to the reversal of foreign investors. While domestic investors were still trading cautiously, foreign investors were active and unexpectedly bought a net of nearly VND750 billion in the session of December 27.
Most recently, the PYN Elite Fund released a report expressing its view that the long-term target of the VN-Index remains unchanged from its previous assessment, at 2,500 points. This target is based on strong profit growth in the next 2-3 years and a stock market valuation of P/E 16.
However, instead of focusing on earnings growth, investors are paying attention to the risks of correction. Since the fall of 2024, market sentiment has been affected by the strength of the US dollar, the possibility of the newly elected US President imposing tariffs on goods, and foreign capital withdrawal from the Vietnamese market.
Commenting on factors affecting the market next year, PYN Elite believes that the first notable factor is that the profit growth of listed enterprises continues to be maintained in a positive direction, thanks to which the market's P/E may decrease to 10.1 times in 2025.
One of the main growth drivers of the Vietnamese economy is international investment and trade. Accordingly, the possibility that Mr. Trump will set up new tariff barriers has caused concern for market participants.
However, Vietnam's exports to the US increased by 132% during Trump's first term and PYN Elite believes that there will not be any major changes to Vietnam's position in exporting goods to the global market in general and to the US market in particular in the upcoming second term.
Currently, the total market capitalization of Vietnam's stock exchanges (HOSE, HNX and UPCoM) accounts for about 57% of projected GDP by 2025. According to PYN Elite, this is a reasonable level and it is believed that the stock market of a rapidly growing economy like Vietnam can easily reach a valuation of nearly 100% of GDP.
