Yesterday's spectacular reversal (November 4) seemed to help investors relieve their hesitation and the cash flow will flow into the market more strongly, but the developments of today's trading session of the stock market were not as expected.
The cautious mentality was still maintained throughout the session, causing trading to take place slowly, the range of fluctuations of the VN-Index was even narrower and it was still necessary to rely on the above pillars for the green color to be retained. However, market liquidity fell sharply to a 19-week low.
At the end of the trading session on November 5, the VN-Index increased by 2.91 points to 1,654.89 points with 121 stocks increasing, while there were 190 stocks decreasing. The total trading volume reached 654.3 million units, worth VND 19,968.4 billion. Foreign investors continue to return to a state of net selling of more than VND875 billion in the whole market.
Investors believe that yesterday's strong increase was simply a technical recovery session after 3 consecutive sharp declines, bringing the VN-Index to the important support zone of 1,610 - 1,600 points.
It can be seen that the recent strong sell-off is the result of many factors. First of all, the profit-taking mentality when the business results of the third quarter of 2025 are announced, many investors realize profits after a period of strong price increases. In addition, cash flow tends to restructure, looking to stocks with more attractive valuations to anticipate the new cycle.
In addition, exchange rate fluctuations also have a significant impact when the gap between the free market and banks reaches a record level, overnight interest rates are still anchored high even though the State Bank has net pumping more than VND39,300 billion in the month. This development caused foreign investors to sell strongly in the last weeks of October.
Experts say that although the VN-Index has decreased by more than 140 points since the peak, the long-term trend has not been broken. In the first 10 months of the year, the index increased by more than 30%, so the adjustment of 9 10% was normal. This is the time to accumulate to prepare for the new wave.
Regarding the possibility of creating a bottom of the market after a deep correction, many experts predict that the VN-Index may retreat below the threshold of 1,600 in a bad situation, and will likely be tested and balanced around the strong support zone of 1,500-1,550. This is considered a necessary clearing phase, helping the market rebalance after the acceleration cycle and creating a more solid foundation for the upcoming period.
Despite the decline in trading volume, if we look at it as a whole throughout 2025, the current liquidity level is still considered quite good. This is an important signal, showing that cash flow is mainly showing a cautious mentality, temporarily stopping outside observation to re-evaluate risks, and there are no signs of a trend of massive capital withdrawal from the market.
Market valuation is still attractive. According to estimates, if the impact of some large-cap stocks, especially Vingroup - the market's P/E coefficient is only around 1011 times, significantly lower than the average of the past 5 years. This shows that there is still room for price increases to be significant as business profits are expected to continue to improve in 2026.
For investors who are " out of stock", experts say that the current reasonable strategy should not be to sell off, but to restructure the portfolio proactively and selectively. This is the right time to review the portfolio, assess the prospects of each industry and each enterprise, and consider the current valuation level to adjust the appropriate proportion for the fourth quarter of 2025 and 2026.
Experts assess that the current period is not the time to seek short-term profits, but is the time to consolidate position and prepare for a new growth cycle of the market in 2026.
