VN-Index surpasses peak after upgrade, why do many investors still lose money?

The Vietnamese stock market fluctuated strongly last week with many notable news, especially when Vietnamese stocks were officially upgraded from frontier to emerging market by FTSE Russell from the early morning of October 8.

Stocks surpass historical peaks

This positive information, along with positive economic data, helped the VN-Index increase by more than 100 points, equivalent to 6.18%, and close the week at 1,747 points, the highest level in history. Meanwhile, the VN30 ended the week up 6.51% to 1,980 points, surpassing the peak of last September and heading towards the 2,000 point price zone.

Liquidity increased after 3 consecutive weeks of decline, with trading volume on HoSE increasing 17.4% compared to the previous week, averaging about 35,000 billion VND/session. Cash flow improved well after a period of adjustment and accumulation. Market sentiment was optimistic due to positive information and prospects, despite foreign investors net selling for the 12th consecutive week, with a value of more than 5,000 billion VND this week.

- Ảnh 1. — VN-Index increased by more than 100 points but many investors' accounts only increased slightly, or even decreased.

However, the general market increased very strongly but the accounts of many investors did not increase, even decreased. "Seeing a lot of positive information in the market and prospects from upgrading, I decided to buy more stocks in securities and banking lines... As a result, the current stock prices in the portfolio are even lower than at the beginning of the week" - Ms. Khanh Thy, an investor in Ho Chi Minh City, complained.

Explaining this phenomenon, Mr. Dinh Viet Bach, analyst, Pinetree Securities Company, said that VN-Index has increased by more than 100 points compared to last week, but if only counting Vingroup stocks, it has contributed more than 45 points with VIC, VHM, VRE and VPL. When cash flow is only concentrated in pillar stocks, it is also the reason why the market increases strongly but investors' accounts can still decrease.

Latest stock forecast

Commenting on the trend next week, Mr. Dinh Viet Bach said that VN-Index could continue to rise, setting a new all-time high. The market will not only focus on Vingroup stocks but may spread to other industry groups.

"Next week, the third quarter financial reports of enterprises will continue to be announced and if positive, it will be a catalyst to push the market to climb to a new peak. Cash flow may rotate to other groups such as securities, real estate, steel and public investment to help the growth rate be more sustainable" - Mr. Bach said.

Many other securities companies such as SHS and Mirae Asset also believe that after a series of positive information such as the official upgrading of the stock market; information about high GDP growth in the third quarter, expectations of economic growth in 2025 of over 8%, improved cash flow, they have begun to selectively increase their investment in new investment opportunities. Investors can consider increasing their investment proportion based on the growth prospects of business results in the third quarter and the end of 2025. The short-term outlook is positive.

Concerns from international stocks

However, one piece of information that is worrying investors is that the escalating US-China trade tensions have caused the global financial market to fluctuate in the trading session last weekend. This could cause the Vietnamese market to decline in the first session of the week.

Mr. Phan Dung Khanh, Investment Consulting Director of Maybank Securities Company, commented that the Vietnamese market may be affected in the short term by international developments but the possibility of early recovery is high. According to him, information about tariffs between the two major economies has been repeated many times this year, so the Vietnamese market is somewhat "immune", while the medium and long-term trend remains positive.

Sharing the same view, Mr. Dinh Minh Tri, Director of Individual Customer Analysis at Mirae Asset Securities Company, said that if the market corrects, it will only take place in the first few sessions of the week, because the global market in general still maintains an upward trend. "If there is a strong correction, it will likely only come after investors have absorbed all the information about the third quarter business results of listed companies," Mr. Tri emphasized.

Source: https://nld.com.vn/vn-index-vuot-dinh-sau-nang-hang-sao-nhieu-nha-dau-tu-van-lo-196251012103149454.htm