Stock market: What opportunities after a series of deep declines?

Cautious sentiment after a series of declining sessions

The Vietnamese stock market has just experienced a volatile first week of April when the index fell sharply in many consecutive sessions, causing the VN-Index to lose more than 100 points from April 1 to 9. The widespread selling pressure has disrupted investor sentiment. A significant portion of the cash flow in the market has fallen into a defensive state, prioritizing cash holdings or selling to reduce risks.

After a series of deep declines, the stock market is showing signs of a technical recovery. Illustrative photo

The simultaneous decline in all groups of stocks, including those with good fundamentals, shows that the market is temporarily "disoriented". Without clear supporting information from the macro economy, the first quarter financial reporting season has not officially started, individual investors mainly trade based on emotions and crowd effects.

In that context, many securities companies commented that panic had pushed the index to a fairly important technical support zone. The developments at the end of recent sessions, especially the recovery at the end of the day after a sharp fall in the morning, showed that bottom-fishing demand had begun to enter the market, although still cautiously.

Recovery signals and selective opportunities

From a technical perspective, many experts believe that the market is likely to see a short-term recovery, especially when the support levels have shown some effectiveness. However, this will not be a strong and even recovery, but a highly differentiated period, where opportunities only really come to strategic and patient investors.

A notable bright spot is the news that the US has just suspended tariffs for 90 days on 75 countries, including many large and developing economies. Thanks to that, major stock indexes in the US have recovered strongly in the latest session, thereby contributing to spreading positive sentiment to the Asian region, including Vietnam.

The aftershocks of this event may not last too long, but they are enough to create a “bounce” for the market after a deep decline. In the short term, money can flow into stocks with stable fundamentals, less affected by macro policies or exchange rate fluctuations.

Strategy for the next phase: Slow but steady

Although there are opportunities for technical recovery, the market still has certain risks. Investors need to prioritize safety and trading discipline, avoiding haste or emotional bottom-fishing. This period is more suitable for the strategy of observing, restructuring the portfolio, and accumulating good stocks instead of short-term "surfing".

Some experts also recommend that investors should divide their cash flow, disburse in parts according to the adjustment rhythm, and closely monitor liquidity developments and foreign investors' reactions. If there are a few more strong recovery sessions with improved liquidity, the short-term trend may become clearer.

Experts say that after a strong correction, the market is gradually creating a new price level. However, the opportunity is not for the majority, but for those who are sober enough to see clearly which stocks are good and which signals are truly reliable. Patience and discipline will be key factors in the coming days.

Tue Anh

Source: https://congthuong.vn/thi-truong-chung-khoan-co-hoi-nao-sau-chuoi-phien-giam-sau-382316.html