On April 3, the domestic stock market fell sharply, with the VN-Index dropping nearly 88 points. This morning, the market continued to fall sharply. Hanoi Moi Newspaper reporters had an interview with Mr. Nguyen Minh Giang, Head of Asset Management Department, Mirae Asset Securities Joint Stock Company, about the market developments.
-Can you tell me what is the main reason for the market decline?
-The market has fallen sharply and reacted strongly because the main reason comes from the US's policy of imposing reciprocal taxes on Vietnamese goods imported into the country. The US President has imposed a series of taxes on many countries, of which Vietnam is one of the countries where the US imposes a large tax, up to 46%.
Investors consider this a big risk for the economy because Vietnam is an exporting country, with a large proportion of exports to the US. Therefore, the market fell sharply yesterday. In this morning's session, the market initially fell sharply with over 70 points, then the decline slowed down.
- With the market developments from yesterday until now, do you see any positive points?
-If we look purely at the score, no. However, it is also necessary to recognize that this decline compared to 2020 is quite similar but the nature of the decline is different. Observations on the market show that investor panic is not as great as the market decline when the Covid-19 pandemic broke out in 2020. That shows that the market is overreacting to the information about the US's reciprocal tariffs.
Besides, for industries that have grown well since the beginning of the year, a floor price drop yesterday only eroded investors' profits and did not lead to too much loss, because for investors who have owned stocks since the beginning of the year, the profit level has been relatively good.
Notably, this morning, some groups of stocks recovered. First was the mineral group. In fact, this group is "immune" to the tariff information because in yesterday's session, the mineral group reacted positively in the trading session that reduced the market's amplitude, typically KSV increased to the ceiling.
Minerals are rare commodities. The United States is a technological country that needs a lot of minerals, while China has banned the export of minerals to the United States. This group has also seen positive developments thanks to the information from the Department of Geology and Minerals (Ministry of Agriculture and Environment) that it has discovered 110 precious and important mineral mines, including 40 gold mines in the Northwest with reserves of nearly 30 tons.
After the panic, investors also began to calm down to analyze which industries were really affected by the tariffs. Therefore, stocks began to differentiate and become more active on the electronic trading board. Stocks of businesses that were not much affected by the tariffs, such as the plastics industry, performed more positively.
-What is your forecast for the market this afternoon and next week?
-I expect the market to recover when investor sentiment improves, and cash flow boldly returns to the market to catch the bottom, because the valuation of VN-Index is currently quite cheap compared to 2022 and 2020. Besides, in terms of businesses, there are businesses with very good valuations, attractive for investors with a long-term perspective to participate.
With a sharp decline this morning, there may be strong bottom-fishing demand in the afternoon and maybe the market will close around the reference level.
Next week, the market will depend largely on how Vietnam negotiates with the United States. In the first sessions of the week, the market may have a certain recovery. However, the tariff story is a long story.
-What advice do you have for investors?
- Actually, there is nothing clear about the reciprocal tariff rate that the US imposes on Vietnam. 46% is the ceiling. Vietnam has sent a delegation to the US for negotiations. Through negotiations, this rate may change. And we hope to receive good news.
In my opinion, the long-term trend of the market is still very good. The domestic stock market has great prospects such as the upcoming operation of the KRX system, market upgrade, and high economic growth targets for this year and the following years.
Therefore, investors should stick with the good companies they are holding shares in. For investors who are holding money, a sharp market decline is a great opportunity to find good companies and participate in the market. Investors who are stuck with high-weight stocks can wait for the recovery to lower their margin to avoid margin calls.
Thank you very much!
In the morning session of April 4, at lunchtime, VN-Index temporarily stopped at 1,182.07 points, down 47.77 points (-3.88%); VN30-Index reached 1,240.64 points after falling 42.54 points (-3.32%). The entire floor had 424 stocks decreasing in price, 68 stocks increasing in price. The total transfer value reached more than 27,000 billion VND.
On the Hanoi Stock Exchange, the HNX-Index fell 10.25 points (-4.64%) to 210.69 points; the HNX30-Index fell to 416.76 points after falling 26.67 points (-6.01%). Nearly VND1,300 billion was traded on the entire exchange.
Source: https://hanoimoi.vn/thi-truong-chung-khoan-giam-manh-la-co-hoi-de-mua-vao-697881.html
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