The Vietnamese stock market is going through a series of tense trading sessions when VN-INDEX was under pressure to adjust from the resistance zone of 1,340 points and strong net selling by foreign investors. Investor sentiment has shifted from optimism to caution in the context of being affected by both domestic and international factors.
According to Mr. Dinh Quang Hinh, Head of Macro and Market Strategy, VNDIRECT Securities Joint Stock Company, in the first trading session of the week, VN-INDEX improved when it increased by more than 10 points, closing at 1,336.26 points. However, the resistance zone around 1,340 points combined with many unfavorable information caused the index to reverse and decrease in points for four consecutive sessions, ending the week at 1,321.88 points, down slightly by 4.3 points, equivalent to 0.3%.
One of the main factors that put pressure on the market is strong net selling activities from foreign investors. In particular, in the three sessions of the weekend, foreign investors maintained a net selling state with each session's value ranging from 1,000-1500 billion VND. This development has a negative impact on large-cap stocks such as FPT, MWG, causing a decrease in VN-INDEX.
Investors' cautious sentiment is also affected by international information as the US Federal Reserve (Fed) continues to keep the operating interest rate unchanged at the 4.25-4.5% range, and signals that interest rate cuts will not be rushed due to concerns about potential inflation.
This partly comes from the tariff policy that President Trump is expected to re-apply, despite recent signs of weakening the US economy. In addition, the domestic market is closely monitoring the possibility that Vietnam may be included in the list of countries subject to US countervailing tax in April.
Along with international factors, some domestic events also have a negative impact on market sentiment. In particular, the news of the ORS Securities Chairman resigning and the Securities Commission's decision to suspend trading in BCG bonds created a wave of sell-offs. ORS, which is a sponsor of BCG's bond lot, has fallen 17% since Tuesday.
Mr. Dinh Quang Hinh commented: The adjustment when VN-INDEX approaches the resistance zone of 1,340 points was predicted in advance. The pressure to adjust may continue in the first sessions of next week. Investors need to closely monitor the net selling movements of foreign investors and bottom-fishing demand at the support zone of 1,300-1,320 points. If VN-INDEX retreats to around the 1,300 point mark, it will open up an attractive disbursement opportunity".
Mr. Hinh said that in the medium term, the market will still have many supporting factors such as attractive valuations, positive business profit prospects in 2025, along with benefits from the KRX system and the ability to upgrade to emerging markets by FTSE. The short-term adjustment is considered an opportunity to accumulate stocks at good capital prices, especially in promising industries such as banking, securities, real estate, electricity and public investment.
