Vietnamese stocks experienced a turbulent start to the week, with the blue-chip group not immune to the volatile trading. The main index lost its support, plunging below the 1,200-point mark to close at 1,188.07, a decline of 48.53 points (-3.92%). The deep slide in points without a corresponding rise in trading volume indicates a deliberate withdrawal of funds and a passive response from buyers.
The market’s sudden plunge left many investors reeling, unable to react in time. Some rushed to lock in profits to protect their gains, while others frantically sold off their losing positions after buying on upward momentum. So, what should investors do after this sharp decline?
Commenting on the market movements, Mr. Nguyen The Minh, Director of Yuanta Vietnam Securities Analysis, shared: “In fact, investors are quite panicked and are selling off assets en masse, despite positive macro conditions and stable business fundamentals. The loss of the 1,200-point mark for the VN-Index even triggered a selling spree in the Vietnamese market, compounded by margin pressures, which further deepened the decline.“
Although the downward pressure persists, the current risks are far outweighed by the market’s upside potential. Therefore, the Yuanta expert expects the market to reclaim the 1,200-point threshold within a few sessions.
Regarding strategies, Mr. Minh distinguished between two investor positions. The first group already holds stocks, while the second group holds cash. For the latter, the market presents abundant opportunities.
According to the Yuanta specialist, it’s rare to find so many quality stocks with attractive valuations all at once. He drew a comparison to the market crash in 2020, stating that the current situation is less risky, as the economy is robust and businesses are stable. “In 2020, the Japanese market experienced sharp declines of 5-6% per session due to COVID-19, but it quickly rebounded and formed a V-shaped recovery. With a strong macro backdrop and economic recovery, the current downturn in the Vietnamese stock market will also be short-lived,” he added.
In terms of strategy, investors with high stock allocations and no margin pressure should refrain from selling at this point. Conversely, those with high cash positions should seize the opportunity to build long-term portfolios. Many quality stocks have become undervalued and are now ideal for accumulation.
Investing in a volatile market: Should beginners consider putting money into high-yield bonds for 10-30% yearly profit?
Short-term stock market trading has proven to be a risky venture for many investors, leading to substantial losses. However, there are a few select open funds that have managed to achieve impressive returns, reaching up to 30%.
Bank stocks sold off heavily
Today (2/2), the VN-Index continues to rise, but in a cautious trading atmosphere. It is noteworthy that most banking stocks in the VN30 basket are facing strong selling pressure.
