Vietnam’s stock market appears poised for a short-term recovery, with technical indicators suggesting a potential breakthrough after the Tet holiday, provided no unexpected shocks or negative developments emerge. This has raised expectations of a positive cash flow return once trading resumes. Banks lead the market After a 50-point drop (nearly 4%) in the first half of January—at times dipping to 1,220 points—the VN-Index showed signs of a rebound. On January 20, the market gained 30 points (2.5%), marking a shift in momentum. However, trading liquidity remains subdued, as funds withdrawn before the Tet break have yet to flow back into the market. Notably, the stock market has gained ground despite continued foreign investor sell-offs. On January 16, foreigners net sold over VND3.1 trillion, with VIC on their radar. More than 50.6 million VIC shares, valued at VND2.04 trillion, were offloaded—most likely as part of SK Group’s previously announced plan to divest over 50.8 million shares. Adding to the uncertainty, exchange rate fluctuations remain a concern, further complicating foreign investment strategies. Similarly, proprietary traders have mirrored foreign investors’ stance, net selling nearly VND39 billion in the two weeks before Tet. Historically, proprietary traders and foreign investors have moved in opposite directions, […]