The stock market entered an accumulation phase after a series of strong increases.

After peaking at 1,800 points, the Vietnamese stock market continued to face correction pressure during the trading week of October 20-24.

The stock market has just experienced a week of strong fluctuations. Illustrative photo

Experts from securities companies believe that VN-Index is in an accumulation phase after a strong increase that has lasted since April 2025.

*Investment opportunities may appear in long-accumulated stocks.

According to Saigon - Hanoi Securities Joint Stock Company (SHS), VN-Index had its second consecutive week of decline, ending at 1,683.18 points (down 2.77%), falling below the 1,700-point threshold. VN30 also fell 1.65% to 1,944.60 points, remaining above the psychological support threshold of 2,000 points.

During the week of October 20-24, VN-Index recorded a sharp decline at the beginning of the week with a record drop, then recovered in two sessions around 1,620 points. Market developments clearly showed the differentiation between industry groups, while liquidity increased by 17.5% compared to the previous week, reflecting that cash flow is circulating to stocks with good fundamentals and positive business results. However, foreign investors continued to net sell for the 14th consecutive week with a value of VND 4,360 billion on HOSE, focusing on MSN (VND 1,027 billion), SSI (VND 730 billion) and CTG (VND 702 billion).

SHS believes that the VN-Index is in the accumulation phase after a strong increase since April 2025. The index is retesting the 1,700-point zone, with strong resistance at 1,730 points - the highest price in the deep decline on October 20. In the short term, selling pressure may increase in stocks that have increased rapidly or used high leverage, while investment opportunities may appear in the group of stocks that have accumulated for a long time, prices returning to the April - May 2025 zone and have positive business results in the third quarter.

Vietnam Construction Securities Joint Stock Company (CSI) described that at the beginning of the week, the market fell into a "suffocating" state when many stocks hit the floor, with almost no buyers. However, the cash flow quickly returned, helping the VN-Index not fall deeply but stay firm at the 1,620 point area and gradually recover at the end of the week. On the technical chart, the index ended the week with a candle with a long "tail" below - a sign that there was buying pressure at low prices, meaning that investors took advantage of "bottom fishing".

According to CSI, liquidity for the whole week decreased by 3.9% compared to the 20-week average, reaching VND37,807 billion (equivalent to 1,204 billion shares matched on HOSE, down 8.06%). The decrease covered 14/21 industry groups; of which, securities decreased by 12.2%, steel decreased by 6.25% and banking decreased by 5.27%. In contrast, telecommunications technology increased by 8.84%, retail increased by 2.38% and plastic increased by 2.08% - the three groups with the strongest increase, notablyFPT , PNJ and Viettel group (VTP, CTR, VGI).

The fact that the VN-Index is holding steady above the 1,620-point support zone shows that the bottom-fishing mentality is still present. CSI recommends that investors maintain a cautious strategy, reduce the proportion of stocks when the VN-Index recovers to the 1,720-point zone and wait for a safe buying opportunity if the index corrects to 1,560 points.

Tien Phong Securities Company (TPS) also believes that the VN-Index has temporarily stopped after three sessions of recovery. Selling pressure has returned as the index approaches the 20-session moving average, reflecting cautious sentiment. TPS believes that if demand does not improve, the current recovery may end, but the 1,600 - 1,620 point range is still a reliable support level in case of market correction.

Overall, after a period of growth that lasted for many months, the market is entering a period of adjustment and clear differentiation. Caution returns as the VN-Index fluctuates around 1,700 points, while smart money begins to select stocks with good fundamentals, growing business results and reasonable valuations.

In contrast to the red covering the domestic market, world stocks, especially those in the US, recorded the strongest weekly increase in many months.

*US stock indexes post biggest gain in months

In the US, the S&P 500 and Nasdaq Composite indexes recorded their biggest weekly percentage gains since August 2025, while the Dow Jones index had its biggest gain since June 2025.

Lower-than-expected inflation data and strong earnings helped all three major US stock indexes close at record highs on October 24, reinforcing expectations that the US Federal Reserve (Fed) will soon cut interest rates.

Specifically, the Dow Jones index increased 472.51 points (1.01%) to 47,207.12 points; the S&P 500 increased 53.25 points (0.79%) to 6,791.69 points; and the Nasdaq Composite increased 263.07 points (1.15%) to 23,204.87 points.

The US Labor Department said its consumer price index (CPI) rose 0.3% in September, below the forecast of 0.4%. “Prices are still rising but at a controlled pace, which helps reduce inflation concerns and reinforces expectations of a Fed rate cut,” said Callie Cox, chief market strategist at Ritholtz Wealth Management.

According to LSEG, the Fed could cut interest rates two more times this year, starting from the meeting on October 28-29. The third quarter 2025 business results reporting season is also off to a good start, with 87% of S&P 500 companies exceeding profit expectations, contributing to supporting investor sentiment.

WTO Director-General Ngozi Okonjo-Iweala called on the US and China to ease trade tensions, warning that decoupling between the two major economies could cut global output by 7% in the long term. She said the WTO was pushing for dialogue to limit the negative impact on global growth.

Previously, during the week of October 20-24, the Wall Street market fluctuated strongly following trade developments and business results. Indexes rose simultaneously in the first session of the week when conciliatory statements from President Trump helped reduce concerns about US-China tensions.

At the end of the session, the Dow Jones index increased 1.1% to 46,706.58 points; the S&P 500 increased 1.1% to 6,735.13 points and the Nasdaq Composite increased 1.4% to 22,990.54 points.

According to VNA

Source: https://baohaiphong.vn/thi-truong-chung-khoan-buoc-vao-giai-doan-tich-luy-sau-chuoi-tang-manh-524633.html