VN-Index expected to recover next week

The market recovered slightly in the first 3 sessions of the week after reaching the support level of 1,300-1,310 points.

However, the news that the US announced reciprocal tariffs on goods from many economies, including Vietnam, with a tax rate of up to 46% was a real shock to the market.

The Vietnamese stock market is under strong selling pressure. The VN-Index dropped by more than 100 points in just two trading sessions at the end of the week. Panic caused investors to dump a series of stocks on the market with 282 stocks hitting the floor in the trading session on April 3.

On April 4, the VN-Index fell nearly 20 points. Screenshot

The panic continued into the trading session on April 4, the VN-Index dropped more than 70 points as soon as it opened and a series of stocks continued to hit the floor. Demand then entered the market strongly, especially in the afternoon session, bringing the index back above the 1,200 point threshold. However, not all sectors recovered, the large-cap group received more favor from cash flow.

Closing the first trading week of April, the VN-Index stopped at 1,210.79 points, down 106.79 points (-8.11%), erasing all the achievements since the beginning of the year.

Market breadth was negative due to asset protection pressure and mortgage liquidation pressure. All industry groups fell sharply during the week. The most positive point in the last session of the week was the good recovery of some banking and real estate stocks in VN30 and the mineral group.

Liquidity exploded. The average liquidity on the Ho Chi Minh City Stock Exchange reached VND27,440 billion for the entire trading week, up 46.32%. Foreign investors had the strongest net selling week since the beginning of the year with a cumulative trading value of VND8,942 billion on this exchange.

Although the closing price was still quite low, it was a positive sign as the VN-Index's decline had narrowed significantly compared to the opening price. Even many large-cap stocks, mainly concentrated in the VN30 group, bounced back, providing great support to the general market such as VHM, VIC, VNM, STB, LPB, SHB.

Experts from Vietnam Construction Securities Joint Stock Company hope that Vietnam and the United States will have new progress in negotiating reciprocal tariffs in a more positive direction. VN-Index is expected to recover next week with a resistance level around 1,255 points.

Meanwhile, expert Phan Tan Nhat, Head of Analysis Group of Saigon-Hanoi Securities Joint Stock Company (SHS), said that in the short term, the market has suffered a tariff shock, exceeding expectations. This is a huge, unexpected pressure on the economy as well as investors, leading to the market having trading sessions, strong selling with the most sudden decline and liquidity in history. This could continue to lead to pressure to sell off outstanding margin debt in the coming sessions.

“Investors should maintain a reasonable proportion and prioritize risk management in the current new context. Investment targets should be directed towards stocks with good fundamentals, leading in strategic sectors, and outstanding economic growth,” the expert recommended.

Experts from Asean Securities Corporation have proposed two scenarios. In the optimistic scenario, the market could recover after the previous strong sell-off, when many stocks have reached attractive valuations.

In the less optimistic scenario, the market may continue to correct deeper to the support levels of 1,150 points and 1,000 points.

Source: https://hanoimoi.vn/ky-vong-vn-index-co-nhip-hoi-phuc-trong-tuan-toi-698076.html