Money is actively returning to the stock market

Dragon Capital assessed that the psychological threshold of 1,300 points is not a worrying barrier, the market will have a favorable breakthrough momentum in 2025 and the coming years.

Dragon Capital: Cash flow is actively returning to the stock market

Dragon Capital assessed that the psychological threshold of 1,300 points is not a worrying barrier, the market will have a favorable breakthrough momentum in 2025 and the coming years.

From the trading session on February 24, 2025, VN-Index closed at 1,304.56 points and continuously maintained above the 1,300 threshold over the past week.  

This signal reflects investor excitement, but also raises questions about the sustainability of the uptrend in the current context.

VN-Index has remained above 1,300 points since February 24.

In a market update, Dragon Capital pointed out some positive supporting factors from the perspective of Vietnam's economic context.  

Accordingly, Dragon Capital said that compared to previous times when VN-Index reached 1,300 points, Vietnam's current economic context has many positive supporting factors.  

Regarding the loose monetary policy, the Government is pushing to reduce interest rates to stimulate growth. After the Official Dispatch No. 19/CD-TTg dated February 24, 2025 on strengthening the implementation of solutions to reduce interest rates, many banks have adjusted the deposit interest rate schedule for all terms.

Public investment - one of the main growth drivers, is being strongly implemented by the Government in key projects since the beginning of the year. 2025 is also the year of completion of key national infrastructure projects in the 2021-2025 period and a pivotal year for strategic projects to transform the country's position in the 2026-2030 period.

Regarding the stock market, the prospect of market upgrading is becoming clearer. The KRX system is expected to be implemented in the second quarter of this year, paving the way for the possibility of market upgrading in September. This could attract foreign capital back.

Market liquidity has improved significantly. The VN-Index has remained above the 1,300-point mark for more than 5 days, with an average trading value on HoSE reaching over VND18,000 billion per session. This is a positive sign that cash flow is returning to the market.

Source: Dragon Capital.

With these factors, Dragon Capital believes that the psychological threshold of 1,300 points is not a worrying barrier. With a strong policy foundation and strong commitment from the Government, business confidence has recovered significantly. This creates favorable conditions for the market to break out in 2025 and the coming years.

Although global trade policies may cause short-term fluctuations, when the domestic economy is strong, external variables are only temporary and do not change the market growth trend. Therefore, instead of being too cautious, investors should take advantage of these opportunities to increase their investment proportion appropriately, Dragon Capital recommends.

Source: https://baodautu.vn/dragon-capital-dong-tien-dang-tich-cuc-quay-lai-thi-truong-chung-khoan-d250718.html