Stock market rises for second consecutive week

VN-Index started the new week with the return of the "king stocks" group as they took turns leading the market. The upward momentum was maintained for 4 consecutive trading sessions since the beginning of the week. The increase in the index was also contributed significantly by 4 consecutive sessions of strong increase of VPL (Vinpearl Joint Stock Company, a subsidiary of Vingroup Corporation) when it was first listed.

VN-Index had a positive trading week. Screenshot

The last trading session of the week, May 16, was the only session where the market closed down during the week. Most banking stocks were under pressure to correct and only a few small and medium-cap stocks saw green. Increased selling pressure at the end of the week limited the market's growth.

At the end of the trading week, the VN-Index stopped at 1,301.39 points, up 34.09 points (+2.69%), reflecting that investor sentiment is gradually improving. Thus, the VN-Index surpassed the psychological mark of 1,300 points, returning to the peak of March 2025, before the sharp decline following the news of US tariffs.

The market opened in green with 18/21 industry groups increasing in price. Retail (+4.69%), construction (+4.05%) and banking (+3.93%) were the 3 industry groups with the strongest increase in points this week.

Along with that, market liquidity has improved compared to the previous week. Accumulated for the whole trading week, average liquidity on the Ho Chi Minh City Stock Exchange reached VND23,934 billion, up 39.2%.

Notably, foreign investors net bought nearly 3,000 billion VND, contributing to strengthening the confidence of domestic investors.

Experts from Vietnam Construction Securities Joint Stock Company believe that VN-Index is on a recovery trend, recording its second consecutive week of gains. However, the recovery from the bottom of 1,075 points in April is facing strong profit-taking pressure (VN-Index has increased by 21%), so there is a high probability that VN-Index needs more time to accumulate or adjust to find a balance before continuing the uptrend.

Therefore, after taking profits and reducing the stock weight to about 20%-25%, investors should prioritize observation and at the same time, expect the VN-Index to adjust to the strong support zone around the 1,250 point mark. At this point, investors can consider returning to the buying position.

According to expert Phan Tan Nhat, Head of Analysis at Saigon - Hanoi Securities Joint Stock Company, VN-Index is growing in the short term back above the 1,300 point threshold. After overcoming this resistance, the index is expected to retest the peak of March 2025, corresponding to 1,320 - 1,340 points. Market sentiment and trends continue to improve thanks to the positive influence of large-cap stocks and the VN30 group.

The market is gradually recovering to pre-tariff levels. However, the outcome of trade negotiations will continue to impact macroeconomic balances as well as corporate production and business operations.

Asean Securities Corporation has proposed two scenarios. In the positive scenario, the market could continue its recovery momentum, approaching the important resistance level of 1,340 points. In the neutral scenario, increasing selling pressure could cause the index to correct to the support level of 1,260 points.

Source: https://hanoimoi.vn/thi-truong-chung-khoan-tang-tuan-thu-2-lien-tiep-702647.html