The stock market was steady before the 3rd Covid wave

00:13 | 20/02/2021

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When the 19 th outbreak of covid infection appeared for the third time in Vietnam with the epidemic in Hai Duong and spread to some big cities and provinces, investors were worried that the stock market would be negatively affected.

However, the market did not have too negative movements and miraculously recovered quickly.

At the end of January 2021, when information about cases of covid 19 in the third wave was announced, the following session on January 28, the market had a record decrease of 73.23 points (-6, 67%) to 1,023.94 points. However, despite the negative news about Covid 19 that continued to be published, the market quickly recovered in the following sessions. At the end of the session on February 19, VN Index is at the level of 1,173.5 points and continuing to challenge the resistance level of 1,200 points. Compared to the market's reaction during the second 19 covid outbreak with the focus on Da Nang, the stock market has been much firmer.

The stock market was steady before the 3rd Covid wave
Artwork / https://kinhtexaydung.petrotimes.vn/

Assessing the stability of the market before the 3rd covid 19 wave, many experts believe that it is largely due to the confidence of investors about the anti-epidemic resistance of the Government and authorities in political apparatus from the central down to the localities. In the context of epidemics raging around the world, Vietnam is a bright spot. This is the clearest manifestation of the Government's anti-epidemic resistance to the involvement of the entire political system. And as the XIII Congress of the Party ended one day early to put all of its energy into the anti-epidemic work. Therefore, the impact of information covid 19 has no longer affected investors' psychology as strongly as before. Investors' confidence in early disease control and macroeconomic stability have brought stability to the stock market.

Another reason why the market quickly recovered from disease news is also the impact of the epidemic itself. Under the influence of Covid 19, economic activities were affected, cash flow invested in other channels was affected, securities emerged once again as a channel attracting large cash flows. Accordingly, the number of new investors increased rapidly. In 2020 alone, the number of stock accounts has increased rapidly equivalent to 10 years earlier. In particular, the number of F0 investors skyrocketed in December 2020 and continued to increase by 36% in January 2021. The new cash flow and investors' excitement at F0 have become the positive drivers for the market.

Besides, the success of the XIII Congress of the Party is also an important cause to help the market recover faster. In which, one of the key tasks set by the Congress is: Focusing on controlling the epidemic covid 19, mass vaccination of covid 19 vaccine for the community; recovery, socio-economic development, strong renewal of the growth model, economic restructuring, construction, synchronous improvement of development institutions ... shows the determination and vision of the Party Congress XIII in the fight against epidemics.

With the main reasons analyzed above, the Vietnamese stock market has stood firm before the 19 th covid boom. Investors are expecting that the authorities will soon control well. epidemic diseases, have appropriate policies for economic development in "new normal" conditions. Since then, promising positive signals of the stock market in 2021.

Van Hung

https://kinhtexaydung.petrotimes.vn/