A worker arrives to collect fallen leaves on the edge of Thien Quang lake in Hanoi. The initial excitement in the domestic market after former President Trump's election win quickly turned to scepticism about the potential impacts of upcoming economic policies on the US-Vietnam trade and investment relations. — AFP
HANOI: The Vietnamese stock market is facing various domestic and international influences, with recent reports of lacklustre business performance keeping the VN-Index from making substantial gains.
In the week of Nov 4 to Nov 8, the market saw a correction and partial recovery, as weakened support from key stocks caused the VN-Index to drop early in the week.
However, bottom-fishing demand helped the market stabilise around the 1,242-point level.
By the end of the last trading session of the week, the VN-Index fell by 2.33 points, or 0.19%, closing at 1,252.56 points.
Meanwhile, the HNX-Index ended at 226.88 points, up 1.47 points, or 0.65%, compared with the previous week.
Foreign investors continued to sell heavily, with net sales reaching 3.631 trillion dong or about US$143.5bil across the market.
Specifically, they sold 3.46 trillion dong on the Ho Chi Minh City Stock Exchange and 150 billion dong on the Hanoi Stock Exchange.
According to BETA Securities, the current cautious sentiment and selling pressure require careful decision-making in trading activities.
The VN-Index may trade within a narrow range as it awaits clearer signals of sustainable growth.
Although liquidity has shown slight improvement, it has not yet confirmed any strong cash flows returning to the market.
Looking ahead, VNDirect Securities Macroeconomics and Market Strategy head Dinh Quang Hinh anticipates a week of cautious trading.
This is given the significance of events like the US presidential election and the November US Federal Reserve (Fed) policy meeting.
The initial excitement in the domestic market after former president Trump’s election win quickly turned to scepticism about the potential impacts of upcoming economic policies on the US-Vietnam trade and investment relations.
Additionally, the Fed’s recent decision to cut interest rates by 25 basis points had already been factored in, offering little to lift investor sentiment, which remains uncertain.
“I expect the market to remain choppy due to the lack of strong supportive news. Investors are watching for signals of currency stabilisation and further guidance from the State Bank of Vietnam.
“The VN-Index is likely to test the 1,240 to 1,250-point support zone, which is a critical level. I anticipate that the VN-Index will be able to hold within this range,” said Hinh.
“Investors might use the pullback as an opportunity to restructure their portfolios, focusing on sectors with strong business prospects, such as technology, banking and industrial real estate,” he said.
The VN-Index has been fluctuating within a narrow range for the past eight to nine months, with extended consolidation yet to indicate a breakout. — Viet Nam News/ANN
