The Vietnamese stock market has just had an exciting trading week when the VN-Index increased by 20.69 points, equivalent to 1.6%, closing the weekend session at 1,326.05 points. This increase marks a strong breakthrough in the market after a period of tensions in the first sessions of the week.
According to Mr. Dinh Quang Hinh, Head of Macro and Market Strategy, VNDIRECT Securities Joint Stock Company, the stock market was under pressure to take profits in the first three sessions of the week when investor sentiment was affected by mixed developments from the international market.
"The US decisions to impose tariffs on Mexico, Canada and China have created a cautious mentality, causing the increase of the VN-Index to stagnate. However, the market has broken out strongly in the last two sessions of the week thanks to positive support information from the country," Mr. Hinh assessed.
One of the important factors driving the market is the move of the State Bank of Vietnam (SBV). "The SBV has announced the suspension of issuing Treasury bills after a long period of using this tool to regulate liquidity. This is a signal that the SBV is strongly committed to supporting system liquidity to reduce market interest rates according to the direction of the Government," said Mr. Hinh.
The SBV also implemented additional OMO (open Market Service) lending contracts with terms up to 91 days, to support longer-term liquidity for the banking system. These measures have contributed to reducing interbank interest rates to 4%/year, creating momentum for the stock market, especially banking and securities stocks.
The market also received positive signals from the listing activities of large enterprises. "The news about Vinpearl submitting its listing documents to the Ho Chi Minh City Stock Exchange (HOSE) has stimulated investor sentiment. This is a remarkable development after a long period of absence of major IPO deals. Immediately after this information, VIC shares increased the ceiling, contributing to boosting the increase of the VN-Index," Mr. Hinh analyzed.
Regarding the outlook for next week, Mr. Hinh commented: "With the positive sentiment spreading, the market can maintain its upward momentum and move towards a strong resistance zone of 1,340-1,360 points. However, this is an area with a large amount of accumulated supply in the past, so the possibility of fluctuations cannot be ruled out." Investors consider partially realizing profits, while reducing the leverage ratio to a safe level to prevent short-term adjustments in this resistance zone.
For investors who have not participated or have a low proportion of stocks, they should patiently wait for adjustments to have better position and capital prices. Disbursement in declines will help optimize investment efficiency and limit risks in the context of the market approaching the important resistance zone.
