Early Tet holiday or stock buying?

(NLDO) – VN-Index is trading with gloomy liquidity and continuously decreasing, eroding investors' accounts near Tet.

The stock market experienced a gloomy trading week with the VN-Index falling sharply in the last session of the week, January 10, falling below the support level of 1,240 points.

At the end of the week, VN-Index closed at 1,230.48 points, down 24.11 points; HNX Index fell 6.16 points to 219.49 points. The market was in red as no sector had positive developments. Apart from a few stocks that increased such as BID, SSB, CTG, SJS, NAB..., a series of stocks fell sharply, "eroding" investors' accounts.

This has caused many investors to worry and temporarily suspend trading. In the last session of the week on January 10, VN-Index had the sharpest decline since August 2024, but the trading value on the HOSE floor was only over VND 11,200 billion despite the strong increase in selling pressure. The situation shows that the cash flow into the market has decreased sharply.

Foreign investors continued to be a minus point when net selling reached 1,080 billion VND on the HOSE floor.

Stock market volatility is discouraging for investors.

Mr. Dinh Quang Hinh, Head of Macro and Market Strategy at VNDIRECT Securities Company, analyzed market sentiment, saying that concerns about US tariff policies have not cooled down in the context of US government bond yields continuing to increase beyond 4.7% and the USD index (DXY) rising back to the old peak above 109.

Domestically, the stock market has entered a "lowland of supporting information" and many investors "took an early Tet holiday" which has weakened cash flow. The sharp decline in market liquidity shows that both supply and demand are maintaining a cautious, wait-and-see attitude rather than actively participating in transactions. This will somewhat limit the market's momentum, both in the downward direction and vice versa.

Foreign net selling has a significant impact on domestic investor sentiment.

"Entering the next trading week, investors should stop selling off when the market has retreated to the strong support zone of 1,200 - 1,220 points. It is necessary to patiently observe market supply and demand in the support zone. If a technical recovery occurs, consider reducing the margin and stock ratio to a safe threshold to manage portfolio risks," said Mr. Hinh.

Forecasting next week, Mr. Vo Kim Phung, Head of Analysis Department of BETA Securities Company, said that the market is experiencing unpredictable fluctuations with short-term downward adjustment pressure and low liquidity, showing investors' caution. For short-term investors, risk management is a prerequisite, so they should maintain a high cash ratio in the current period and limit the use of financial leverage (margin).

"For investors with a long-term vision, the current corrections may be the right time to accumulate stocks of businesses with good fundamentals and positive growth potential in the medium and long term. In the coming time, it is necessary to monitor macro variables, trade policies and taxes of the Trump administration to have an accurate assessment of the prospects for the industry sectors" - Mr. Phung recommended.

Source: https://nld.com.vn/chung-khoan-tuan-toi-tu-13-den-17-1-nghi-tet-som-hay-mua-gom-co-phieu-19625011211093534.htm