The Vietnamese stock market has not stopped the correction momentum in the past week when selling pressure increased right from the beginning of the week, pulling VN-Index deep down and losing the 1,800 point mark.
Although bottom-fishing demand appeared to help the index temporarily regain balance and recover in the mid-week sessions, the main diễn biến is still a state of tug-of-war with narrow fluctuations in the context of liquidity maintained at a low level. Demand is mainly exploratory rather than leading, causing recovery waves to lack spillover and easily weaken when short-term supply pressure increases again.
It is noteworthy that liquidity continued to weaken and fell to the lowest level in more than a year, with a session of matched order value on HOSE of less than 14,000 billion VND. Foreign investors continued to net sell, while the Vingroup group, especially VIC and banks, are still the rare support to keep the index from falling deeper.
It can be seen that the current decrease in liquidity reflects both short-term cautious psychology and the waiting state for new trends of cash flow. After the recent correction, bottom-fishing demand has not been really decisive because investors still prioritize observation, while VN-Index has not confirmed a clear balanced zone.
Basically, the macroeconomic picture at home and abroad, along with recent geopolitical developments, has not yet appeared a catalyst strong enough to strengthen confidence. This makes the general psychology of the market relatively cautious, investors tend to limit opening new positions and reduce trading frequency to preserve status.
Moving to next week, the scenario for the market is likely to still face adjustment pressure due to the lack of a new story strong enough to activate cash flow. In that state, if no breakthrough information appears, VN-Index can completely continue to retreat to test the MA200 level around the 1,750 point zone. This is an important support zone and also a real test for the market's resilience after a long period of decline.
The stock market at the present time is still relatively difficult in the short term when there is a lack of strong enough catalysts and investor sentiment is still cautious. Therefore, for investors holding a high proportion of cash, the portfolio should be oriented towards medium and long-term goals instead of expecting short waves.
After a long period of sideways movement, the valuation level of quite a few leading stocks has retreated to a relatively low level compared to the multi-year average, opening up attractive accumulation opportunities for a long-term vision. When the valuation is already at a low level, investors can completely start disbursing their portfolios in a disciplined manner, focusing on businesses with good internal strength, stable cash flow and a clear growth story.
For investors holding many stocks, portfolio review and restructuring should also be considered. However, instead of continuous short-term trading, investors can wait for more favorable times to restructure their portfolios and focus on some stocks with outstanding growth potential compared to the general market level.
