At the end of the last trading week of May, the VN-Index closed above 1,330 points, marking a four-week streak of gains following a V-shaped recovery from the sharp decline in early April 2025.
Notably, during the past week, the index briefly touched 1,348.3 points – its highest level in three years. However, strong profit-taking at the end of the week pulled the index back down.
The index is recovering, but investors' accounts are still "far from shore."
Observing market developments, the upward momentum last week was mainly concentrated in a few stocks belonging to sectors such as real estate, textiles, and seafood. Meanwhile, most other sectors continued to trade sideways or experienced slight corrections.
Mr. Dinh Quang Hinh, Head of Macroeconomics and Market Strategy at VNDIRECT Securities Company, commented: "Although the VN-Index is in an upward trend, the market has not yet seen clear consensus. Capital flows are still concentrated on a few groups of stocks with their own unique 'stories,' while many stocks in the banking and retail sectors have shown signs of correction in the last trading sessions of the week."
According to Mr. Hinh, the market next week is likely to continue its accumulation trend to absorb profit-taking pressure, while awaiting new supporting information.
The VN-Index has risen for four consecutive weeks, at one point reaching a three-year high, but many investors' accounts have yet to recover to pre-April levels.
Although the VN-Index recovered strongly in May and extended its winning streak to four consecutive weeks, many investors have yet to see their accounts return to pre-April correction levels. The main reason is the divergence of capital flows, meaning not all stocks recovered in line with the overall index.
According to Mr. Dinh Viet Bach, an analyst at Pinetree Securities Company, the pressure of market volatility has become evident as the market approaches its previous peak around 1,340 points. Capital continues to flow into large-cap stocks such as Vingroup , real estate companies, and a few other stocks with specific supporting information.
"During the first trading week of June, the market may enter a state of indecision as investors await the results of the third round of tariff negotiations between Vietnam and the US. Profit-taking pressure may intensify in the group of stocks that have risen sharply recently, such as the GEX group, banking, and retail," Mr. Bach predicted.
During the week, the VN-Index at one point reached its highest level in the past three years.
Opportunities to disburse funds during market corrections.
According to recommendations from securities companies, if the VN-Index corrects to the support zone of 1,300 – 1,320 points, investors may consider allocating a small proportion of their capital to stock groups that have not fully recovered from the decline in early April, such as banking, securities, steel, textiles, and seafood.
However, besides choosing the right stocks to "recover losses," investors also need to pay attention to psychological factors during trading. Mr. Dao Hong Duong, Director of Industry and Stock Analysis at VPBankS Securities Company, emphasized: "To avoid sleepless nights investing, investors should control their emotions well and aim for a medium- to long-term strategy. In particular, investing in stocks that are historically undervalued over the past 10 years is a way to reduce short-term loss risk."
Mr. Duong believes that stocks with attractive valuations are generally less risky, unless investors misjudge the company's prospects. "Although the growth rate may vary, with low valuations, the likelihood of significant losses is not high. This is a worthwhile option to consider in a volatile market," he said.
Source: https://nld.com.vn/dau-tu-chung-khoan-the-nao-de-khong-mat-an-mat-ngu-196250531205508219.htm
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