Vietnam's stock market launched a new trading week after Tet holiday with many strong fluctuations. Despite the initial decrease pressure, VN-Index has recovered thanks to the support information from domestic policies and ended the week with a slight increase. However, the resistance area of 1,280-1,300 points is still a big challenge, making the market need more accumulated time before breaking out.
According to Mr. Dinh Quang Hinh - Head of Macro and Market Strategy, VNDirect Securities Joint Stock Company, after the Lunar New Year holiday, Vietnam's stock market starts a new trading week with many strong fluctuations. The first session after Tet recorded a significant decline of VN-Index due to the impact of the US information claiming import tax on goods exported from Canada, Mexico and China. However, shortly thereafter, the market quickly regained the recovery momentum when the US announced the postponement of tax policy for Canada and Mexico within a month.
Mr. Hinh analyzed, the stability returned to help VN-Index maintain the trend of increasing in the last three sessions of the week. Closing the session on February 14, the VN-Index stood at 1,275 points, up 0.7% compared to the closing level before the holiday. Notably, in the weekend session, this index used to approach 1,280 points.
One of the main drivers that helped the market to maintain the green in recent sessions were a series of positive information from the country. The Government is considering adjusting the GDP growth target in 2025 from 6-6.5% to 8% and loosening inflation (CPI) to 4.5-5%. This move reflects the Government's determination to promote economic growth, and at the same time open up to the fiscal and monetary policies to continue loosening in 2025. This is a positive signal for Investment channels, especially the stock market.
The January macro report of the General Statistics Office published on 6.2 also brought many optimistic signals. Despite being influenced by long -term vacation, industrial production index (IIP) and implementation capital still recorded positive growth compared to the same period. This shows that the economy has accelerated from the beginning of the year instead of tending to "slow down" as usual in the period after Tet.
Despite many supporting factors, VN-Index is still facing a strong resistance area of 1,280-1,300 points. This is a bumper area that the market has not been overcome throughout 2024. In the context of foreign investors continued to sell net and the domestic cash flow was not enough to push the market up, according to Mr. Dinh Quang Hinh, VN-Index. Power will need accumulation time in this area before breaking out.
At this stage, the market may continue to struggle, passing with the circulation of cash flow between stock groups. Investors are recommended to maintain a moderate proportion of stocks, and consider restructuring the portfolio in the direction of priority of the industries that are with strong support information such as public investment, construction, materials. Building, banking, textile and seafood export.
With the current context, the market is still in the stage of exploration and accumulation. Investors need to observe the development of cash flow, the move of foreign investors as well as important macro information to make appropriate decisions in the coming weeks.
