The plunge in the world financial market after the unexpected signal from the US Federal Reserve (Fed) in the early morning of December 19 has made investors restless, fearing a major collapse in the Vietnamese stock market.

“Early in the morning, I turned on my computer and saw the US stock market was red, so I turned off the screen, hoping that the stock market would have a not-too-bad session,” said Mr. Nguyen Hung, a stock investor on the SSI exchange.

According to this investor, US stocks fell too sharply yesterday, losing more than 1,100 points, after having fallen for 9 previous sessions. Gold and Bitcoin prices also plummeted, the financial market was in turmoil.

“The Fed has sent a rather surprising signal that it will only cut interest rates twice in 2025, instead of the previous expectation of four times. This is a new turning point in US monetary policy. A very cautious signal. It could cause money to quickly withdraw from many types of assets, including stocks, and return to seek shelter in the USD,” Mr. Hung worried.

Mr. Hung's concerns soon came true, as the Vietnamese stock market fluctuated right from the opening. The VN-Index at times broke through the important psychological support level of 1,250 points. Most of the pillar stocks fell sharply, including the real estate and banking groups.

However, by the end of the session, bottom-fishing activities of individual investors helped the VN-Index not fall too much, and the HNX-Index even turned green again. The market was not too negative, with the VN-Index only falling more than 11 points to 1,254.67 points.

The banking group decreased quite sharply. HDBank (HDB) of billionaire Nguyen Thi Phuong Thao decreased by 300 VND to 23,500 VND/share. TPBank (TPB) decreased by 250 VND to 16,000 VND/share. SHB decreased by 150 VND to 10,200 VND/share. Vietcombank (VCB) decreased by 700 VND to 92,400 VND/share...

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Vietnam's stock market falls along with the world. Photo: VNSC

Steel giant Hoa Phat (HPG) of billionaire Tran Dinh Long decreased by 500 VND to 26,850 VND/share. Technology shares of FPT of Mr. Truong Gia Binh decreased by 600 VND to 148,100 VND/share...

In the market, the number of stocks that decreased in price was nearly twice as high as the number that increased in price. The strong selling pressure is understandable due to the psychological impact of US and Asian stocks after the speech of Fed Chairman Jerome Powell.

However, liquidity increased quite strongly, soaring to nearly VND20,700 billion thanks to bottom-fishing activities of individual investors, overwhelming the net selling of VND560 billion by foreign investors and more than VND1,200 billion by securities companies' self-trading group.

Some codes increased quite impressively, including YEG, SAM and TDH.

YEG shares of Yeah1 Group Corporation continued to increase for the third consecutive session following the echoes of the concert “Anh trai vu ngan cong gai”, reaching 17,800 VND/share, the highest level in the past 3 years. Less than a month ago, YEG was at over 10,000 VND/share.

The concert “Anh trai vu ngan cong gai” (The brother who overcomes thousands of obstacles) welcomed more than 130,000 visitors on the day of the concert on December 14 in Hung Yen. The Prime Minister has just suggested expanding the cultural model like the two concerts “Anh trai say hi” or “Anh trai vu ngan cong gai”.

Yeah1 is the company that holds the copyright and produces two TV shows, "Anh trai vu ngan cong gai" and "Chi dep dap gio". Yeah1 has attracted many big sponsors for these shows, and recorded explosive profits in the third quarter.

Evaluating the session on December 19, experts from CSI Securities said that the decline in the US market had a negative impact on the psychology of domestic investors. Although it recovered at the end of the session, the VN-Index broke the support level of 1,260 points, corresponding to the 200-day moving average price (MA200).

Accordingly, high liquidity is a bad signal for the recovery that has formed before. However, CSI experts believe that the decline on December 19 is not yet the highlight of the reversal of the previous uptrend. Because the decline is not too large and there has been an effort to recover when closing. Moreover, although liquidity is high and sudden, it is still lower than the explosive session on December 5, 2024.

Regarding the general outlook, many organizations have a positive view on Vietnamese stocks, with the expectation that the VN-Index will reach 1,400 points by the end of 2025 thanks to the "market upgrade wave", most likely next September.

Positive macroeconomic forecasts, with GDP in 2025 likely to reach 7-7.5% and FDI inflows into Vietnam... could support Vietnamese stocks.

Besides, Vietnam's stock market is undervalued and the forecast profit growth rate of listed enterprises is still positive, possibly reaching 25-30%.

However, cash flow is still quite cautious, waiting for signals from domestic and foreign policies, including policies from the Donald Trump administration.

Vietnam's stock market will soon be upgraded Vietnam is focusing on removing "bottlenecks" to upgrade its stock market. The Securities Law (amended) and Circular 68 have contributed to overcoming the market's weaknesses.