The VN-Index has been moving sideways in the last two sessions, with narrow fluctuations, reflecting the cautious sentiment of investors ahead of the long Lunar New Year holiday. Overall, the market’s performance has not had many highlights and profit-taking pressure has only increased significantly when the index approaches the resistance zone of 1,250 points.
In the short term, the market is strongly differentiated, with many stocks fluctuating in opposite directions while awaiting information on business results for the fourth quarter of 2024, as well as the 2025 business plans of enterprises.
The market is trading with low liquidity, as investors are also cautiously waiting for this information to re-evaluate and assess the growth prospects of businesses, as well as the pressure to reduce short-term speculative exposure as the Tet holiday begins. It is likely that the tug-of-war will not end soon and cash flow will be differentiated between stock groups as business results information is gradually revealed.
However, experts believe that the volatility of the VN-Index will not be too large in the remaining sessions of the old lunar year, so the sideways trend with a narrow range will continue in the coming sessions.
Dr. Nguyen Duy Phuong - Investment Director of DG Capital - expressed the opinion that, in the period before Tet, the market recorded gloomy liquidity due to investors' psychology of resting and preserving capital, leading to market developments of an accumulation nature with a narrow fluctuation range and limited participation of large cash flows.
"However, this is also the time for individual investors to consider long-term opportunities. Investors should focus on stocks with solid fundamentals, companies with positive Q4 business results or stable growth potential in 2025. In particular, short-term adjustments or fluctuations can be good opportunities to accumulate stocks at reasonable prices. Importantly, investors need to maintain a balanced portfolio and limit the use of high leverage during this sensitive period," said Dr. Phuong.
Experts from Asean Securities Company believe that in the upcoming sessions, the market is likely to continue to recover as domestic exchange rate pressure is expected to cool down significantly soon as the DXY index continues to decline after the Trump administration confirmed that it will not impose tariffs immediately after the inauguration.
Global stock markets extended their recovery as investors were temporarily relieved of concerns about President Donald Trump’s aggressive policies. However, investors should still be cautious as volatility remains the dominant trend in the last trading week of 2024 (lunar calendar).
Yuanta Securities Company predicts that the stock market may soon return to an upward trend in the coming sessions and the VN-Index may retest the resistance zone of 1,250 - 1,255 points. At the same time, the market is in a short-term accumulation phase, so cash flow may continue to differentiate between groups of stocks. The positive point is that the short-term sentiment indicator continues to increase, indicating that new buying opportunities continue to increase.
Yuanta Securities Company recommends that investors can continue to hold stocks at 40-50% of their portfolio and can consider buying new stocks during corrections.
