In contrast to the recovery of many international stock indices, the domestic stock market has continuously recorded fluctuations, moving mainly within the range of 1,240-1,260 points.
Although the index showed signs of recovery when it retreated to the support zone around 1,240 points, the cautious state of short-term transactions has not been completely removed and the adjustment pressure has reappeared.
Liquidity remained low, equivalent to the previous week, showing a slowdown in both supply and demand.Short-term transactions seem to be still assessing the impacts of Donald Trump's upcoming US presidency on the Vietnamese economy, waiting for more information to support the domestic stock market.
The sluggishness of cash flow also comes from the fact that cash flow has not yet confirmed the leadership of large-cap stocks, when fluctuations and short-term adjustments in stocks in the VN30 basket appear, showing signs of prolonging, testing patience for current transactions.
Selling pressure from foreign investors has also created a significant obstacle to the market's ability to recover sustainably in the short term, while increasing the caution of individual investors.
In the context of the market with positive signs from improved liquidity, buying power showing signs of returning, investors can expect a recovery in the upcoming trading sessions.
However, this period still has unpredictable fluctuations, requiring investors to maintain caution and have a careful observation plan.
This helps to correctly assess the trend, avoiding risks from short-term noise signals.In particular, the continued strong withdrawal of foreign capital will be a factor to monitor in the following sessions to assess market prospects and investment orientation.
Accordingly, in a positive scenario, the VN-Index will fluctuate and accumulate, maintaining the support zone around 1,230-1,240 points and new increasing efforts are expected to bring the index towards higher resistance levels, the first target being the 1,270-1,280 point zone.
The positive point is that the mid- and small-cap group shows the ability to attract and retain cash flow more prominently than the general level.
Short-term cash flow may continue to seek opportunities in this group, creating its own "playground", while the overall market has not confirmed a bottom or a new recovery trend.
However, to create momentum to push the index up strongly and the recovery momentum to be highly reliable, it is indispensable for the leading participation of large-cap stocks.
According to analysts at SSI Research, the stock market may fluctuate in the short term, but this is also an opportunity to buy potential stocks at reasonable prices to build a long-term investment portfolio.
Investors should prioritize businesses with strong and sustainable profit growth, as this is expected to be the main factor driving stock prices in 2024 and 2025.
At the same time, investors should diversify their portfolios to limit the impact of unpredictable fluctuations.Along with policy fluctuations from the US, domestic interest rates and exchange rate fluctuations are two macro factors that need to be closely monitored in the risk management process.
