Should I take profit during Tet holiday or buy stocks?

The market has just experienced a week of volatile trading between buyers and sellers in the context of the approaching holiday season. Accordingly, a number of investors have had the mentality of "taking an early Tet holiday" and selling to get their money back.

On the other hand, many investors are still taking advantage of the opportunity to “pick up” stocks to prepare for the period after Tet. This helps the market transactions to be quite bustling despite the approaching holiday.

At the end of the week, VN-Index decreased slightly by 0.27% compared to the previous week to 1,172.55 points. Meanwhile, HNX-Index increased by 0.5% to 230.6 points and UPCoM-Index increased by 0.8% to close at 88.4 points.

Right before the Lunar New Year, VN-Index received many important macroeconomic news. In particular, the consumer price index (CPI) cooled down with an increase of 3.37% compared to the same period; the industrial production index (IIP) and import-export both improved positively.

In particular, FDI capital continued to flow strongly into Vietnam with registered FDI capital increasing by 40.2% yoy and realized FDI capital increasing by 9.6% yoy, thereby boosting the growth of industrial park real estate stocks in the first session of the week.

Cash flow also flowed into the electricity industry after the Prime Minister inspected and requested to speed up the progress of the 500kV line 3 project from Quang Trach to Pho Noi.

On the contrary, investors took profit from banking stocks. However, in January as a whole, this industry group led the increase thanks to strong credit growth and the State Bank assigning the entire credit target for 2024 to banks.

Notably, foreign transactions continued to be a bright spot. Foreign investors continued to disburse with a value of nearly VND 1,320 billion, but the main buying force came from the negotiated channel with a sudden transaction of more than a thousand billion at a UPCoM stock, the rest were net sellers on the matched order channel.

Finance - Banking - Stock market perspective 5/2: Should we take profits during Tet holiday or buy stocks? — VN-Index performance last week (Source: FireAnt).

Commenting on the trading performance of the new week, Mr. Dinh Quang Hinh, Head of Macro and Market Strategy Department of VNDIRECT Securities Company, said that investors should consider taking advantage of the pre-holiday declines to accumulate stocks. The recent increase in exchange rates has shown signs of ending, helping to relieve psychological pressure on a number of investors.

Instead of waiting until after Tet to disburse, Mr. Hinh recommends that investors can take advantage of the adjustment sessions before Tet to accumulate stocks at discounted prices, prioritizing stocks in industries with supporting fundamental information such as banking, securities and retail.

However, investors should note not to abuse leverage (margin borrowing) before Tet, but should use available money to reduce capital costs.

Yuanta Vietnam Securities Company believes that the market will likely continue to increase in the coming trading week and the VN-Index may retest the resistance level of 1,183 points in the coming sessions.

At the same time, the market is still in a short-term accumulation phase, so the differentiation between stock groups may continue in the next trading week, and small and medium-sized stocks may continue to attract short-term cash flow.

In addition, the short-term sentiment indicator continues to move sideways, showing that investors are still cautious with current market developments, mainly groups of stocks with mixed movements, which also means that there are no signs of cash flow withdrawing from the market.

The short-term trend of the general market remains bullish. Therefore, Yuanta recommends that short-term investors can continue to hold a high proportion of stocks in their portfolio, especially short-term investors should not buy large-cap stocks.

Medium-term investors can continue to hold a high proportion of stocks in their portfolio and take advantage of the correction to increase the proportion of stocks .

Source