The Vietnamese stock market has exhibited significant volatility lately, particularly highlighted by the performances of various stocks like YEG, as investors navigate through fluctuated waters influenced by market demand and foreign investor behaviors.
The stock YEG, under the Yeah1 Group, has made headlines for its astonishing surge, reportedly increasing its price to the maximum cap for five consecutive trading sessions from December 17 to 23, 2023. According to Yeah1, this spike has been attributed to the objective supply-demand dynamics of the stock market, where they clarified, “Cổ phiếu YEG tăng trần 5 phiên giao dịch liên tiếp... diễn biến khách quan cung cầu của thị trường chứng khoán,” highlighting the autonomy of the stock's movement beyond the company's control.
Despite this rollercoaster ride, the company maintains its operational integrity, assuring stakeholders of normal business conduct consistent with its plans.
A peek at the trading history reveals YEG’s price skyrocketed from approximately 9,300 VND per share to about 23,200 VND before experiencing significant declines down to 21,600 VND. Many analysts speculate this selling pressure arises as investors rush to secure profits after what was dubbed as exceptionally high gains.
The general sentiment within the market has turned cautious, especially following the intense selling spree from foreign investors. Reported figures indicated foreign investors net sold nearly 12 trillion VND throughout November alone, significantly affecting the domestic sentiment as the external pressures led to fluctuations barely keeping the VN-Index within the 1,200 to 1,300 points area.
Interestingly, amid the fluctuations of major stocks, small and mid-cap stocks have attracted investor interest due to perceived opportunities for higher returns outside the tumultuous performance of larger counterparts. Such stocks have often attracted significant liquidity, with some like KSV doubling their values through significant increases due to increased trading activity.
Investment analysts are placing focus on this trend, with statements emphasizing the prospect of finding growth opportunities within these lower capitalization stocks. “Tôi cho rằng cổ phiếu small cap và mid cap sẽ tăng mạnh hơn bình quân thị trường... trong năm 2025,” asserted Mr. Đào Hồng Dương, the director of industry analysis at VPBank.
This strategy to invest away from major firms affected by foreign pullbacks aligns with the adjustments of many domestic investors opting to seek potentially lucrative returns from sectors like construction and basic resources, where performance has remained relatively steady.
Analysts at Shinhan securities have added nuance to discussions around market behavior, explaining it is natural for retail investors to pivot toward sectors exhibiting resilience to the current domestic-economic pressures, which poses some risks for companies categorized under small caps vulnerable to broader economic shifts.
Emerging reports indicate various stocks within the construction sector are testaments of asset growth tied to valuable pipeline projects and indicates they could provide strong returns, especially as the firm prepares for significant infrastructure developments slated to kick off shortly.
Market participants are being advised to stay vigilant about buying opportunities, especially as analysts remind them to pay close attention to stock stories tied to companies maintaining growth amid economic headwinds. The prevailing narrative suggests these companies are well-positioned to capitalize when market conditions stabilize.
Overall, as December progresses, the Vietnamese stock market is poised on the edge of opportunity and turbulence, with small-to-mid cap stocks appearing as potential beacons of growth against relaxation-return scenarios. Observers advise continuous monitoring of market conditions and preemptive profit strategies as the end of this calendar year approaches.
