VN-Index skyrocketed nearly 30 points, what should investors do?

Vietnam's stock market saw the strongest gains in Asia today, with the VN-Index surging to near 1,270 points.

This was the strongest surge in over 3 months.

Today's session (December 5th) witnessed a surge in the Vietnamese stock market, with the VN-Index rising by more than 27 points, returning to the 1,260-point range, closing at 1,267 points. Across the HOSE exchange, 347 stocks increased, six times the number of stocks that decreased.

This session also marked the strongest increase in the past three and a half months.

The market experienced a surge in activity in the afternoon session, with large-cap stocks spreading across the market, starting with securities and banking, followed by real estate, steel, chemicals, fertilizers, information technology, and retail.

The VN30 index reached a gain of nearly 40 points, with 29 stocks rising and only one stock, BVH (Bao Viet Group, HOSE), falling.

Large-cap stocks led the market's surge (Photo: SSI iBoard)

Securities stocks performed best today after a long period of correction, with many even hitting the ceiling price, including: SSI (SSI Securities, HOSE), VCI (Vietcap Securities, HOSE), HCM (Ho Chi Minh City Securities, HOSE), VIX (VIX Securities, HOSE),...

Liquidity has also recovered strongly, returning to the 21,000 billion VND mark after a long period of stagnation since October.

Today's positive results partly stem from foreign investors continuing their net buying trend, with 760 billion VND across the market, concentrated in the HPG (Hoa Phat Steel, HOSE), FPT (FPT, HOSE) and MSN ( Masan , HOSE) groups, providing momentum for large-cap stocks. At the same time, this helped spread positive sentiment throughout the market.

However, contrary to the trend, Viettel 's group of stocks reversed course and fell sharply.

While HVN shares fell 3.15% to 26,150 VND/share, a series of Viettel group stocks faced profit-taking pressure.

VTP shares hit the floor price due to profit-taking pressure (Photo: SSI iBoard)

Specifically, VTP (Viettel Post, HOSE) fell by the maximum allowed 7%, to 140,000 VND/share. VGI (Viettel Global, HOSE) decreased by 3.6%, to 88,200 VND/share. Finally, CTR (Viettel Construction) fell by 2.6% to below 130,000 VND/share.

This move is believed to stem from profit-taking pressure following the recent sharp rise in Viettel's stock group, notably VTP, which recorded a gain of over 60% in the past month.

The total market capitalization of the three Viettel Group stocks quickly "evaporated" by more than 11,700 billion VND in today's trading session. Of that, VGI alone lost over 10,000 billion VND; however, this did not shake Viettel Global's position as one of the top companies with the largest market capitalization on the stock exchange.

Differentiation is likely to increase in the near future.

Explaining today's developments, Mr. Dang Van Cuong, Head of Investment Consulting Department at Mirae Asset Securities, said that the market is receiving positive signals from external factors.

First, news regarding Vietnam's upgrade to emerging market status from FTSE shows a clearer roadmap, creating expectations for foreign capital inflows once the upgrade is complete. In addition, large-scale net buying by foreign investors, exceeding 666 billion VND today, focused on large-cap stocks, fueled market enthusiasm to a peak.

Therefore, according to Mr. Cuong, the market has never lacked cash flow; what's lacking is whether the reasons are good enough and convincing enough to drive cash flow more aggressively.

Investment opportunities will depend on projected business results for Q4 2024 and the entire year of 2025.

Today's unexpected surge has significantly boosted investor sentiment, opening up opportunities for further market gains. However, market differentiation is likely to become more pronounced in the coming sessions.

Currently, there is no new macroeconomic information, and economic data is still on track. Therefore, forecasts for Q4 2024 and the entire year of 2025 will be the basis for identifying investment opportunities and the destination of capital flows.

Opportunities may arise in sectors with compelling narratives, such as retail, driven by a recovery in overall market purchasing power; and the materials sector, benefiting from price and output recovery as numerous public investment projects are implemented and accelerated.

The differentiation will not only occur between economic sectors in the market but also among individual companies within those sectors, so investors need to conduct thorough analysis and make careful selections.

Additionally, some argue that investors should take advantage of the opportunity to take profits on stocks that have reached their target prices.

Source: https://phunuvietnam.vn/vn-index-tang-vot-gan-30-diem-nha-dau-tu-nen-lam-gi-20241205174318898.htm