Vietnam's stock market poised for rising after Tet
The Vn-Index rose in the Lunar new year’s first six sessions during the 2016-2021 period, with 2020 being the only exception due to the emergence of the Covid-19 pandemic.
Vietnam’s stock market resumes transaction today [February 7] after a week-long Tet, with past data suggesting the benchmark Vn-Index had performed positively in early-year trading sessions.
| Investors at a securities company in Hanoi. Photo: Tran Quynh |
The Vn-Index rose in the lunar new year’s first six sessions during the 2016-2021 period, with 2020 being the only exception due to the emergence of the Covid-19 pandemic.
“The sharp plunge of the Vn-Index prior to Tet was an opportunity for investors to accumulate their stake holdings and ride on the rise in the new year,” stated the SHS Securities Company in a report.
At the last trading week before Tet, Vn-Index witnessed two sessions in decline and three rises, resulting in a net gain of six points and closing the year at 1,478.96.
Experts suggested the strong correction of the market before Tet was due to investors' sentiment of keeping low activities ahead of the country’s largest festive period.
In a contrast move, foreign investors had been active in buying shares, which was reflected by a net bought in amount during the four consecutive sessions.
Yuanta Vietnam Securities expected the Vn-Index may attempt to break the 1,486-mark during the first trading session of the year.
“Business results in 2021 and the plans for this year would be decisive factors for the performance of stocks in the market,” it added.
Sharing the view, ASEAN Securities Company noted optimistic sentiment may push the Vn-Index through the current resistant zone and even approach the 1,500-1,510 marks.
BSC Securities Company noted the Vn-Index proved its resilience against the 1,475 mark and is now ready to move up to 1,500.
“In case the index surpasses the 1,480-1,490 zones in the first few sessions, there is a high chance for the short-term upward trend,” BSC said while calling for investors to prioritize stocks of firms with strong business results and high potential in 2022.
“There would be a shift towards stock with solid fundamentals and remain as the main trend for investment this year, with those in fields of aviation, retail, banking and industrial parks among bright candidates,” Dong A Securities stated.
