Contrary to most of the cautious predictions of securities companies about the scenario of a correction after yesterday's strong recovery session on March 24, the market had an excited trading session, marking the most positive session in the past half month.
Closing the session on March 25, VN Index increased by 43.42 points, equivalent to 2.69%, to more than 1,658 points. The HOSE floor table recorded 276 gainers compared to 60 losers.
Although recording a fairly strong increase in points, liquidity has not improved much compared to the previous session. The fact that the holding side only pushed orders above the reference level makes bottom-fishing cash flow not have the opportunity to push them up the board.
Statistics show that for the whole session today, only more than 892 million shares were matched orders on the HoSE exchange, equivalent to a trading value of 22,611 billion VND.
Foreign investors continued to have another net selling session, raising the net selling streak on the HoSE to 10 consecutive sessions. In today's session, foreign investors net sold 1,000 billion VND, of which the banking group was under the strongest "clearance" pressure with 3 codes VCB (209 billion VND), STB (152 billion VND) and BID (113 billion VND).
Notably, the list of gainers includes a series of large stocks such as VIC, VHM, VPB, GVR, TCB. These 5 codes alone contributed about 18 points plus to the index. Regarding industry groups, the banking group contributed the most to today's increase session. The oil and gas group also surged with all component stocks of this group closing above the reference price. POW increased by more than 5%, while two pillar codes including GAS and PLX accumulated 2.2% and 3.8% respectively.
Experts believe that geopolitical conflict is just a "temporary shock". Vietnam is still a "bright spot" attracting FDI capital thanks to the shift in the global supply chain and strong internal strength. Therefore, when the conflict subsides, the Vietnamese economy will quickly recover. This will be the main driving force for the upward trend of the stock market in the long term.
In addition, the prospect of upgrading the market from frontier to secondary emerging markets from FTSE is still a bright spot in the short term, as FTSE will have an official announcement in the near future.
In a recent report, KIS Securities Company forecasts that Vietnam will surpass the mid-term review in March and will be officially added to FTSE's indices from September 2026. At that time, billions of USD from foreign funds will pour into the market, creating a new wave of growth.
A strong correction makes market valuation attractive. When the market is panicked, both good and bad stocks go down together - this creates unreasonable valuation. Many stocks with good fundamentals, strong finances and not much affected by oil prices are traded at low prices.
According to statistics, KIS Securities Company found that about 70% of stocks are being undervalued by financial institutions. This level is equivalent to the valuation level in the COVID-19 epidemic. Therefore, the current decline may be a good opportunity for investors to open medium and long-term positions with good stocks.
With the current context, investors should restructure their portfolios. Accordingly, investors can retain businesses with basic foundations with sustainable profit growth, strong finances, and clear competitive position in the industry. In addition, it is necessary to reduce the proportion or eliminate stocks that are in a high valuation range compared to the prospects, and stocks whose growth story is no longer there.
Investors should also maintain a high cash ratio. Experts believe that maintaining a high cash ratio brings two important advantages: first, it protects assets from continuous erosion if the market continues to decline, and at the same time allows flexible disbursement in attractive price zones for low-valued stocks or when the market starts to stabilize and recover.
Finally, do not use leverage (margin) to disburse in a downward trend. Accordingly, financial leverage is a double-edged sword. In a downward market, margin will amplify losses, forcing investors to sell collateral (Call Margin) for stocks in the portfolio before stocks can recover.
