An investor monitors the stock market. — Photo tuoitre.vn

HÀ NỘI — The Vietnamese stock market entered 2025 with a series of lacklustre trading sessions, weighed down by persistent selling pressure. Analysts highlighted that while there are expectations of economic growth, investors should remain cautious about foreign exchange volatility, interest rates and foreign capital flows.

By the end of the week, the VN-Index settled at 1,254.59 points, marking a decline of 20.55 points, or 1.61 per cent. Similarly, the HNX-Index fell by 1.51 per cent to 225.66 points.

A key concern during the week was the lack of liquidity. Weak buying momentum allowed selling pressure to dominate, culminating in a sharp drop on the final trading session of the week.

The indecisive market trend was eventually broken as sellers lost patience, with blue-chip stocks and banking shares exerting significant downward pressure on the benchmark index.

Head of Market Analysis at Saigon-Hanoi Securities (SHS), Phan Tấn Nhật, noted that market breadth tilted heavily towards the downside, with selling pressure concentrated in the finance, insurance and real estate sectors. Furthermore, foreign investors continued their net-selling streak on the HoSE, with an outflow of approximately VNĐ831 billion, dampening overall market sentiment.

Nhật explained that the VN-Index is currently undergoing a short-term correction phase, hovering below the 1,265-point resistance zone and above the 1,250-point support level. In the medium term, the index is expected to remain within a broad consolidation range between 1,200 points and 1,300 points, with a balanced zone around 1,250 points.

Technical indicators suggest that cash flow is retreating from the market and selling pressure may persist in the short term. Additionally, the strengthening US dollar against other currencies has added further volatility to the market, raising concerns about continued market turbulence in the coming weeks.

Experts from Vietcombank Securities (VCBS) warned that the market may face continued volatility as it tests lower support levels, potentially putting negative psychological pressure on investors.

Despite a challenging start to 2025, experts remain optimistic about the market's long-term trajectory. Projections suggest that the VN-Index could achieve a 10–12 per cent growth rate in 2025, reaching levels between 1,400 and 1,410 points.

Nhật identified banking stocks as a prominent investment opportunity for 2025, driven by the State Bank of Vietnam's plan to target 16 per cent credit growth and the capital-raising plans of major banks.

Meanwhile, analysts at VCBS advised that supply pressure remains significant and investors should exercise caution when initiating new positions. However, they also noted that investors can gradually accumulate high-quality stocks with strong fundamentals for long-term holding.

While short-term caution dominates investor sentiment, experts believe that Việt Nam's stock market retains the potential for solid growth in 2025, supported by favourable macroeconomic fundamentals and targeted policy measures. — VNS