Stocks seek equilibrium after strong fluctuations

The market had positive developments on April 11. Screenshot

After the Hung Kings Commemoration Day holiday, the Vietnamese stock market continued to decline in two sessions on Tuesday and Wednesday due to escalating trade tensions. The VN-Index fell to 1,073.6 points at one point.

Immediately after that, the US announced a 90-day suspension of reciprocal tariffs on many countries, including Vietnam. The global financial market immediately reacted positively to this news. The Vietnamese stock market opened Thursday (April 10) with purple dominating, maintaining a strong increase of over 70 points throughout the trading session.

The market set up a historic trading session with nearly 400 stocks jumping to the limit on the Ho Chi Minh City Stock Exchange. Investors went from panic selling to competing to buy at ceiling prices.

Following a positive trading session, stock indices continued to rise in the final session of the week with explosive liquidity. The VN-Index closed the week at 1,222.546 points, up slightly by 11.8 points (+1%) compared to the previous weekend's close.

Foreign investors had a volatile trading week, significantly narrowing their net selling momentum with a cumulative trading value of VND1,336 billion on the Ho Chi Minh City Stock Exchange.

Mr. Dinh Quang Hinh, Head of Macro and Market Strategy Department, VNDirect Securities Joint Stock Company, said that next week, the market may continue to seek balance after a period of strong fluctuations.

Some factors supporting the market are the expected positive growth in the first quarter of 2025 business results of listed enterprises; updated information on the progress of the KRX system implementation. Credit growth is positive. The State Bank plans to launch a VND500,000 billion package for enterprises to invest in infrastructure and digital technology.

However, on the other hand, tariff risks remain as the US and China have shown no signs of making concessions to each other.

“Therefore, investors should not be hasty and need to maintain a cautious mindset. 1,240-1,260 points could be the resistance zone for this recovery. Investors should take advantage of the recovery to reassess the impact of tariffs on businesses in their investment portfolios, come up with solutions, and restructure their portfolios. Investors should gradually shift to industries that are less affected by tariffs, industries that benefit from the Government's fiscal and monetary stimulus policies as well as the recovery trend of domestic consumer demand such as banking, residential real estate, retail, electricity, and public investment,” the expert recommended.

Experts from Vietnam Construction Securities Joint Stock Company believe that the increase on April 11 shows that the recovery can reach the resistance level of 1,275 - 1,300 points. This is a point where there is a high possibility of profit-taking pressure because the number of stocks that have been buying at the bottom since the US announced a 46% reciprocal tax on Vietnamese goods has all made a profit.

Experts from Saigon - Hanoi Securities Joint Stock Company (SHS) believe that confidence is returning to the market after the tariff shock, sell-off pressure, short-term mortgage liquidation... Many stocks are still relatively cheap compared to the internal factors of the business. Investors should maintain a reasonable proportion in the current new context. The investment target is towards stocks with good fundamentals, leading in strategic industries, and outstanding growth of the economy.

The State Securities Commission has just held a conference to evaluate the preparations of market members to put the KRX system (an information technology system for managing and operating transactions on the stock market, signed a technology transfer agreement between the Ho Chi Minh City Stock Exchange and the Korea Stock Exchange) into operation.

At the conference, many representatives shared about the readiness to connect with the KRX system. Representatives of the leaders of the stock exchanges and the Vietnam Securities Depository and Clearing Corporation directly exchanged information and answered questions about operations.

Source: https://hanoimoi.vn/chung-khoan-tim-diem-can-bang-sau-bien-dong-manh-698790.html