Stock market continues to consolidate amid cautious sentiment
Stock market continues to consolidate amid cautious sentiment
The VN-Index remained largely sideways during the first three sessions of the week, facing significant selling pressure on Thursday (December 19), while staging a modest recovery in the final trading session.
Investors need to closely monitor the stock market. — Photo laodong.vn |
Việt Nam's stock market experienced a week of fluctuation and consolidation within a narrow range, reflecting investor caution amid global uncertainties and domestic macroeconomic pressures. Despite these challenges, the VN-Index managed to hold above a key support zone.
The VN-Index remained largely sideways during the first three sessions of the week. It faced significant selling pressure on Thursday (December 19) and staged a modest recovery in the final trading session.
By the end of the week, the VN-Index settled at 1,257.5 points, marking a 0.4 per cent decline. Meanwhile, the HNX-Index posted a marginal gain of 0.03 per cent, closing at 227.07 points.
Trading volume on the HoSE dropped by more than nine per cent compared to the previous week, reflecting subdued investor appetites. Foreign investors continued their selling streak, with net outflows exceeding VNĐ1.3 trillion (US$51 million), marking the third consecutive week of net foreign selling.
According to Vietcombank Securities (VCBS), the sharp decline on Thursday was largely driven by external macroeconomic news and fluctuations in the US stock market. However, bottom-fishing demand emerged at the critical support level of 1,250 points, helping the market stabilise.
Head of Analysis at Saigon-Hanoi Securities (SHS), Phan Tấn Nhật, highlighted that the VN-Index has faced two consecutive weeks of correction, following its rebound from the 1,200-point level. The adjustment and accumulation phase, he noted, is relatively normal, with a noticeable divergence among individual stocks. Some stocks have even shown significant resilience, surpassing previous peak levels.
The market remains under pressure from multiple factors, including global market volatility, currency fluctuations and year-end margin loan settlement pressures. Foreign selling activity on the HoSE, amounting to VNĐ1.3 trillion, has also weighed on investor sentiment.
However, Nhật believes that the VN-Index's medium-term outlook remains within a broad accumulation range between 1,200 and 1,300 points, with the 1,250-point level acting as a pivotal equilibrium zone.
Experts also expressed optimism about the market's medium to long-term trajectory, pointing out that Việt Nam's stock market capitalisation stands at approximately US$295 billion, with a price-to-earnings (P/E) ratio of around 12 times. This valuation remains attractive in relation to the country's economic scale and a projected GDP growth rate of seven per cent in 2025.
“This valuation represents a reasonable capitalisation for the market and is relatively appealing compared to the broader economy. The market's internal quality has improved after an extended accumulation phase since early 2024. Many stocks and sectors are now trading at reasonable price levels, offering substantial opportunities for investors,” Nhật said.
In light of these factors, VCBS advised investors to consider partial investments in stocks that have successfully tested key support levels or have been consolidating over the past one to two months with stable cash flow and emerging signs of a rebound. Potential sectors include seafood, real estate and banking.
As the market continues to consolidate, experts emphasise the importance of disciplined portfolio management, caution against excessive leverage and recommend a patient, long-term investment approach.
