Early Tet holiday or stock buying?

(NLĐO) – The VN-Index is trading with sluggish liquidity and continuously declining, eroding investors' accounts as Tet approaches.

The stock market experienced a sluggish trading week, with the VN-Index falling sharply on the final trading day of the week, January 10th, dropping below the 1,240-point support level.

At the end of the week, the VN-Index closed at 1,230.48 points, down 24.11 points; the HNX Index fell 6.16 points to 219.49 points. The market was dominated by red as no sector performed positively. Besides a few gainers like BID, SSB, CTG, SJS, NAB…, a series of stocks fell sharply, eroding investors' accounts.

This has caused concern among many investors, leading them to temporarily suspend trading. On the last trading day of the week, January 10th, the VN-Index experienced its sharpest decline since August 2024, yet the trading value on the HOSE exchange was only slightly over 11,200 billion VND despite strong selling pressure. This situation indicates a significant decrease in capital inflow into the market.

Foreign investors continued to be a negative factor, selling net 1,080 billion VND on the HOSE exchange.

The volatile stock market is discouraging for investors.

Mr. Dinh Quang Hinh, Head of Macroeconomics and Market Strategy at VNDIRECT Securities Company, analyzed market sentiment, stating that concerns about US tariff policies have not subsided amidst the continued rise of US government bond yields above 4.7% and the US dollar index (DXY) returning to its previous peak above 109.

Domestically, the stock market has entered a "period of limited supporting information," and the fact that many investors took an early Lunar New Year holiday has weakened capital flows. The sharp decline in market liquidity indicates that both supply and demand sides are adopting a cautious, wait-and-see approach rather than actively participating in trading. This will somewhat limit the market's momentum, both in the downward and upward directions.

Net selling by foreign investors has significantly impacted the sentiment of domestic investors.

"Entering the next trading week, investors should stop panic selling as the market has retreated to near the strong support zone of 1,200 - 1,220 points. It is necessary to patiently observe market supply and demand at the support zone. If a technical rebound occurs, consider reducing margin and stock holdings to safe levels to manage portfolio risk," Mr. Hinh said.

Forecasting for next week, Mr. Vo Kim Phung, Head of Analysis Department at BETA Securities Company, observes that the market is experiencing unpredictable fluctuations with short-term downward pressure and low liquidity, reflecting investor caution. For short-term investors, risk management is paramount, so maintaining a high cash ratio at this time and limiting the use of financial leverage (margin) is recommended.

"For long-term investors, the current corrections may be a suitable time to accumulate shares of companies with strong fundamentals and promising growth potential in the medium and long term. In the coming period, it is necessary to monitor macroeconomic variables, trade policies, and tax policies of the Trump administration to accurately assess the prospects for various 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