Trading in tight range ahead of Tết holidays

The stock market traded in a narrow range last week, with most industries experiencing a divergence trend. Experts believe that in the period before the Lunar New Year, the index will fluctuate in a narrow level, but investors can still look for opportunities in short-term positions.

The market’s benchmark VN-Index on the Hồ Chí Minh Stock Exchange (HoSE) ended the week at 1.060.17 points, while the HNX-Index on the Hà Nội Stock Exchange (HNX) closed at 211.26 points.

Both benchmarks gained for the week, with the VN-Index rising 0.8 per cent and the HNX-Index up 0.3 per cent.

Liquidity also did not have a big change, partly reflecting the cautious sentiment of investors in the trading sessions before Tết. Specifically, the average matching volume on HoSE reached nearly 436 million shares per session, down 20.65 per cent over the previous trading week, while the HNX’s average matching volume was nearly 51 million shares a session, down 16.52 per cent.

This was also the reason why the VN-Index had no motivation to hit higher levels.

As the Lunar New Year approaches, investors are often worried. However, it is worth noting that in the last 21 years, the VN-Index has increased 15 times and decreased six times during sessions ahead of the festival. Especially, five days before Tết, the average performance is always positive.

Refer to:
Vietnam news

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