The stock market recovered positively last week

The strong increase occurred in the first four sessions of the week, supported by positive investor sentiment when the new information technology system on the stock market (KRX) officially operated successfully from the session on May 5.

In addition, signs of cooling tariffs such as Vietnam officially entering the reciprocal tariff negotiation round with the US from May 7, the US announcing the first trade agreement (with the UK) after imposing reciprocal tariffs, the US and China holding trade negotiations in Geneva on May 10 and 11 have contributed to boosting investors' enthusiasm.

In addition, the market was also fueled by the strong growth of Vin stocks after the news that Vinpearl would list 1.8 billion shares on the Ho Chi Minh City Stock Exchange with the first trading session on May 13.

VN-Index increased for 4 consecutive sessions and decreased slightly at the end of the week. Screenshot

The VN-Index had an impressive breakthrough in the first four sessions of the week and only slightly adjusted in the last session of the week after encountering difficulties at the strong resistance zone of 1,270-1,280 points.

Liquidity has slightly decreased compared to previous weeks. Notably, foreign investors returned to net buying of about VND1,260 billion, contributing to strengthening the confidence of domestic investors. Most sectors have recovered positively, notably real estate, chemicals, technology and oil and gas - the sectors that played a leading role in the increase last week.

Regarding the short-term outlook, Mr. Dinh Quang Hinh, Head of Macro and Market Strategy, VNDirect Securities Joint Stock Company, said that profit-taking pressure will increase next week when recent positive information about tariff negotiations and corporate profit growth in the first quarter of 2025 has been largely reflected in prices.

In the immediate future, the VN-Index will face many obstacles at the resistance zone of 1,270-1,280 and further at the psychological level of 1,300 points.

Without strong supporting information, such as significant progress in the US-Vietnam trade negotiations, the scenario of the VN-Index breaking through the above strong resistance zone is not high. The market needs a period of consolidation after the rapid increase last week to absorb cheap goods. In the context of the market possibly moving sideways or slightly adjusting, cash flow can rotate strongly between groups of stocks.

“Short-term investors should consider taking profits from some of the stocks that have increased sharply recently to switch to stocks that have not recovered significantly, such as industrial real estate, oil and gas, seafood or stocks with strong supporting information such as electricity (increasing retail electricity prices). At the same time, investors should maintain a moderate stock proportion and limit the use of leverage when the market is facing strong resistance levels,” Mr. Dinh Quang Hinh recommended.

According to experts from Saigon - Hanoi Securities Joint Stock Company (SHS), the market is in the recovery phase. Currently, many codes still have relatively reasonable prices compared to the fundamental factors of the business.

The market is recovering to the price range of the tariff announcement session. This is not an attractive price range to consider further disbursement. Disbursement needs to be selective, depending on growth prospects.

Investors should maintain a reasonable proportion. Investment targets are stocks with good fundamentals, leading in strategic industries, and outstanding economic growth.

Experts from Asean Securities Corporation have proposed two scenarios. In the positive scenario, the market could continue to recover and approach the important resistance level of 1,300 points. In the neutral scenario, the market would continue to move in a balanced manner and move sideways around the range of 1,230-1,270 points.

Source: https://hanoimoi.vn/thi-truong-chung-khoan-phuc-hoi-tich-cuc-tuan-qua-701883.html