In yesterday's session (December 19), affected by negative information from the international financial market, the VN-Index experienced a sharp decline accompanied by increased liquidity.
The market's decline is not difficult to predict, when external pressure is affecting and the derivatives expiration session is inside. However, the positive point is that investor sentiment is not affected too much.
According to experts, this is not the highlight of the previous uptrend reversal. Because the decrease is not too large and there has been an effort to recover when closing. In addition, although liquidity is high and sudden, it is still lower than the explosive session on December 5, 2024.
For the remaining trading days of 2024, VCBS experts recommend that investors should not panic and sell stocks at low prices, but should observe market developments in the coming sessions. It is even possible to consider increasing the proportion of stocks with good fundamentals for long-term investment portfolios. Although the probability of fluctuations still exists, the appearance of bottom-fishing demand shows that the market will soon balance and recover at the support level of 1,250 points.
KB Securities Company also commented that the bottom-fishing cash flow is still maintained at low price areas, concentrated in some leading stocks, helping the index create a candlestick pattern that retracts its legs at the end of the session. Although this development is not enough to confirm a reversal opportunity for the market, it still temporarily preserves the short-term uptrend, especially when the index is testing the nearby support zone. Investors are advised to limit selling at low prices, and can increase a part of their trading position when the index or target stocks retreat to support.
Mr. Tran Hoang Son, Director of Market Strategy at VPBankS Research, predicted that the Vietnamese stock market is facing a bear trap and may continue to fluctuate in early 2025. In the late 2024 - first half of 2025, liquidity may move sideways on an average and low level. However, in the second half of 2025, starting from August, liquidity will increase, triggered by the upgrade when domestic and foreign cash flows increase their purchases again.
In 2025, Mr. Son believes that the loosening policy will continue to support the market to grow better. The VN-Index is forecast to reach over 1,400 points, fluctuating around 1,350 points, while liquidity is forecast to reach over VND23,000 billion, possibly as high as VND26,000 billion.
