Stock market new week: The possibility of "breaking the peak" is not high, but the pressure to decrease deeply is not big either

Efforts to maintain the uptrend despite profit taking

Concerns about escalating trade tensions have resurfaced as US President Donald Trump said he could impose a 50% tariff on European Union (EU) goods starting June 1 and warned Apple that it could face a 25% tariff on all iPhones imported into the US. This has caused the US's previous "soft" tariff policy towards China to be dispelled this past week. That was the main information flow affecting the global stock market last week.

World stock markets mostly fell last week, with a -2.5% drop in the Dow Jones index and a -2.6% drop in the S&P500 index, making both indexes currently -2.21% and -1.34% lower than at the beginning of the year, respectively.

In Asia, Hong Kong stocks are attracting investors thanks to their status as a global financial center, attracting capital flows from China and internationally. Since the beginning of the year, the Hang Seng Index has increased +17.65%, the best performing market in Asia.

The domestic stock market maintained its upward momentum last week, despite profit-taking pressure appearing during the week, especially in the session on May 22. The VN-Index closed the week at 1,314.46 points, up +13.07 points, equivalent to an increase of +1% compared to the previous week, recording the third consecutive week of increase, at one point the index reached the old peak of 1,330-1,340 points when reaching the highest threshold of 1,331.93 points.

Stock market new week: The possibility of

All stock groups maintained their upward momentum, supporting the general market trend. Accordingly, the bluechip group (VN30) had the best recovery, up +1.8%, while the smallcap and midcap groups increased by +0.74% and +0.64%, respectively.

However, the market breadth last week was not as positive as the previous two weeks, the stock market was clearly differentiated when the increase was mostly concentrated in the Vingroup group (+16.15%). Statistics show that the VN-Index increased by 13 points, in which the two stocks VIC (+16.25%) and VHM (+18.62%) contributed 22.56 points.

Some stock groups maintained their growth momentum such as: Aviation, Seaports/Logistics... Going against the market trend were stock groups such as: Viettel (-5.58%), Technology (-3.22%)...

On the Hanoi Stock Exchange, the two main indices had opposite movements. In particular, the HNX-Index had a week of decrease of -2.37 points, ending the week at 216.32 points, corresponding to a decrease of -1.08% compared to the previous week. Meanwhile, the UPCoM-Index increased by +0.89 points, closing at 96.22 points.

Market liquidity remained at a fairly good level last week, although it decreased compared to the previous week when investors were more cautious. Accordingly, the total market trading value last week was VND24,707 billion, down -6.8% compared to the previous week. Order matching liquidity also decreased -4.6% to VND22,383 billion.

Although the market is divided, there are still many stock groups that attract cash flow during the week such as: Real estate, Vingroup group, logistics, public investment, aviation...

After two consecutive weeks of net buying, foreign investors returned to net selling last week, although the net selling value was not too large. Accordingly, foreign investors net sold -718 billion VND during the week. However, since the beginning of May, foreign investors have been net buying +3,385 billion VND - this is also the first month of net buying since January 2024.

Opportunity to "break the peak" under pressure

The domestic stock market is still quite positive. As predicted earlier, the market has been under more profit-taking pressure, but the upward momentum has remained quite stable. Overall, the market's performance last week was quite good. The score is moving towards higher resistance, on the background of slightly decreasing liquidity, showing that the loss of breath is not too great. The point that needs to be verified is probably the liquidity of the weekend session decreased quite suddenly, but this needs further monitoring.

Liquidity is also the most important signal to pay attention to this week. If the liquidity level remains at a good level, the market will enter a good accumulation phase. The market is still subject to many fluctuations from international information, especially unpredictable information from tariffs or interest rate news from the FED. However, in the domestic market alone, domestic investor sentiment may still be stable when there are many positive developments in the Vietnam-US trade negotiations. The current information on cooperation between the two countries recently also creates expectations for a more positive outcome than before.

Technically, the VN-Index has lost some momentum at 1,320 points. Therefore, the short-term resistance zone of the market, corresponding to 1,320-1,330 points, will be a big challenge for the VN-Index this week. In the current context, when there is not much supporting information in the last week of May, combined with profit-taking pressure, the possibility of "breaking the peak" of 1,340 points is not high. However, that does not mean that the market is not able to surpass the peak.

Therefore, investor sentiment may be more cautious and this can be observed through the new week's cash flow. In the context of a temporary lack of supporting information, portfolio management is the top priority in the short term. In the medium and long term, opportunities are still good for those who follow the value investing school.

Source: https://nhandan.vn/thi-truong-chung-khoan-tuan-moi-kha-nang-pha-dinh-khong-cao-nhung-ap-luc-giam-sau-cung-khong-lon-post882368.html