80TH Anniversary August Revolution and National Day
Log in
Business

Vietnam stock market set to recover after deep slump

This could be a good opportunity for investors to consider buying good stocks that have gradually plummeted to the short-term support area, said a securities company.

The majority of securities firms have advised investors to refrain from selling out their stocks as market could soon recover following yesterday’s deep slump.

 Investor at a securities company in Hanoi. Photo: Kinhtedothi

At the close on June 8, the benchmark Vn-Index fell by 2.86% or 38.9 points against the previous trading session to 1,319.88.

The fact that Vietnam’s stock market has been on the rise for last five consecutive trading sessions and remained one of the best performing in the world puts investors under huge pressure on selling for profit.

Along with selling pressure from domestic investors, their foreign peers continued to maintain the position as net seller with over VND360 billion (US$15.7 million) on the Ho Chi Minh City Stock Exchange (HoSE), taking the total net sale figure of foreign investors to over VND31 trillion (US$1.35 billion) since early 2021.

SHS Securities company said it is no doubt that yesterday’s big slump is causing concern among investors that the market may turn to a negative trend.

“But it would be too soon to conclude that whether the market rise is coming to an end or just a short correction period before making a breakthrough,” noted SHS.

While the strong capital inflows may keep the market return to a positive trend, SHS suggested investors should buy in stocks in case the Vn-Index falling into short-term supporting zone of 1,300-1,310.

MBS Securities Company shared the same view by saying recent movements of the market showed technical recovery often occur after sharp decline. In this regard, MBS expected the supporting zone for Vn-Index would be around 1,300-1,315.

According to Viet Dragon Securities Company (VDSC), the market’s recent strong correction caused deep concern among investors as there was no negative news that could influence their sentiment.

“However, we realize that this is just a normal correction cycle of the market, when large-cap stocks gained too quickly recently and needed to adjust and create a new price equilibrium. Therefore, this could be a good opportunity for investors consider buying good stocks that have gradually plummeted to the short-term support area,” said Nguyen Bao from VDCS.

In short-term, Agriseco Securities Company said the market may continue its correction phase and go back to the 1,300-zone. “If the market can keep this mark, Vn-Index will expand again in upcoming sessions,” said Agriseco.

Reactions:
Share:
Trending
Most Viewed
Related news
Hanoi proposes simpler tax rules for household businesses

Hanoi proposes simpler tax rules for household businesses

The Ministry of Finance is collecting feedback on its proposal to tighten tax rules for household and individual businesses under the revised Tax Administration Law.

VATM, Boeing partner to modernize air traffic management system

VATM, Boeing partner to modernize air traffic management system

The agreement addresses Vietnam's increasing demand for advanced air traffic management solutions.

Vietnam, Google strengthen ties on quantum technology

Vietnam, Google strengthen ties on quantum technology

Vietnam and Google will establish a joint task force to initiate projects focused on quantum technology, AI development, and digital transformation.

Vietnam targets 5G nationwide coverage this year

Vietnam targets 5G nationwide coverage this year

Vietnam is accelerating 5G expansion and smart city development as key pillars of its digital transformation agenda.

Vietnam fast-tracks smart city policy with new draft decree

Vietnam fast-tracks smart city policy with new draft decree

Smart cities are poised to become a cornerstone for advancing Vietnam’s digital and urban economies.

Vietnam sees OCOP as pathway to inclusive, sustainable rural value chains

Vietnam sees OCOP as pathway to inclusive, sustainable rural value chains

The forum recognizes Vietnam’s OCOP model as a catalyst for inclusive and sustainable rural development.

Vietnam home to nearly 17,000 OCOP products  

Vietnam home to nearly 17,000 OCOP products  

OCOP production brings governments, enterprises, cooperatives, and communities together to foster capacity building, quality control, brand development, and market connectivity.

Public-private cooperation key to boost sustainable growth 

Public-private cooperation key to boost sustainable growth 

President Luong Cuong identified public-private partnerships as a major way of promoting economic growth and sustainable development among APEC member states.