Vietnam’s stock market faced a turbulent session on December 19, influenced by the U.S. Federal Reserve's unexpected monetary policy signals. Major real estate and banking stocks declined, pulling the VN-Index below a critical psychological threshold.

Global markets reacted negatively after the Fed announced plans to cut interest rates only twice in 2025, instead of the four reductions previously expected.

This cautious approach caused a sell-off in risky assets, including stocks, as investors sought the safety of the U.S. dollar.

Vietnam stock market reaction

The VN-Index dropped over 11 points to 1,254.67, with key sectors like banking and real estate underperforming.

However, individual investors stepped in to "bottom-fish," preventing deeper losses and helping the HNX-Index recover into positive territory.

Banking stocks declined, including Vietcombank (VCB), down 700 VND to 92,400 VND per share, and TPBank (TPB), down 250 VND to 16,000 VND. The steel giant Hoa Phat (HPG) fell 500 VND to 26,850 VND per share.

Despite the broader market downturn, select stocks with compelling stories saw gains. Yeah1 Group (YEG) surged to its highest level in three years, driven by the success of its concert "Anh trai vượt ngàn chông gai" (Call Me By Fire), which attracted over 130,000 attendees. YEG shares hit 17,800 VND, a significant leap from 10,000 VND just a month ago.

Market outlook

Analysts from CSI Securities noted that while liquidity surged to 20.7 trillion VND, signaling strong selling pressure, the losses were not severe enough to mark a trend reversal.

The VN-Index remains supported by optimistic forecasts, with some projecting a rise to 1,400 points by the end of 2025, fueled by potential market upgrades, strong GDP growth of 7-7.5%, and continued FDI inflows.

However, cautious sentiment persists, with investors closely monitoring domestic and international policy developments.

Manh Ha