HANOI: The stock market is poised to enter a phase of limited supportive information leading up to the 2024 Lunar New Year, with several emerging risk factors that could impact the overall market trend.
Last Friday, the benchmark VN-Index experienced a decline of 0.65%, closing at 1,154.70 points.
Throughout the past week, the average trading volume on the southern exchange stood at 90.5 million shares per session, with a total value of 1.8 trillion dong.
Head of the macro and market strategy analysis aivision at VNDirect Securities Joint Stock Co (VNDirect), Dinh Quang Hinh, said that recently released US inflation data, which exceeded expectations, is likely to dampen investor enthusiasm in international markets.
On the domestic front, gold prices remain high, and the sudden resurgence of exchange-rate pressure in recent sessions poses a risk that requires close observation, he said.
Acknowledging the market’s struggling trend, Hinh anticipated that it may persist into the next trading week due to the lack of consensus among different industry groups in terms of cash flow attraction.
While the recent increase in stock indexes has been primarily driven by banking stocks, other sectors have not exhibited significant signs of attracting cash flow.
Considering the potential profit-taking pressure on banking groups in the upcoming trading sessions, the absence of an alternative leading group in the market might pose challenges for sustaining upward trajectory.
Last Friday’s trading session saw an increase in liquidity compared to the previous session, indicating that supply in the market is being maintained and exerting pressure, said Viet Dragon Securities Co.
While the decline was relatively modest due to support from the banking sector, the market showed a notable presence of red indicators, it said.
With the continued presence of supply, a correction in the next trading session is possible, but the extent of the correction may not be significant. Additionally, cash flow is expected to increase and provide support when the market retreats to lower price levels. — Viet Nam News/ANN
