Should we continue taking profits on stocks?

(NLĐO) – Profit-taking pressure is increasing in the market as the VN-Index marks its eighth consecutive week of gains, with many stocks beginning to experience profit-taking.

The VN-Index has seen eight consecutive weeks of gains, rising from around 1,220 points to around 1,350 points. At the close of the week, the VN-Index stood at 1,326.15 points, up 0.01% from the previous week, with significant divergence among different stock sectors.

Stocks in the information technology, oil and gas, industrial, insurance, construction, and port-transport sectors are experiencing significant selling pressure with surges in volume, indicating short-term distribution pressure.

For example,FPT shares fell sharply by 3.74% in the last trading session of the week, with a sudden surge in trading volume exceeding 16 million shares.

This development caused FPT shares to fall to their lowest level since the end of November 2024, after declining by more than 7% last week.

Conversely,SHB shares surged 7% to their ceiling price on the last trading day of the week, with a dramatic increase in trading volume exceeding 132.3 million units. SHB's share price reached its highest level since the beginning of the year.

Foreign investors continued their strong net selling trend on the HOSE, with a value exceeding 1,700 billion VND this week.

Chứng khoán tuần tới (từ 17 đến 21-3): Tiếp tục chốt lời cổ phiếu?- Ảnh 2. — The VN-Index rose for eight consecutive weeks, but the upward momentum is weakening.

Experts at Pinetree Securities Company believe that the VN-Index's upward momentum slowed down last week as the market showed signs of profit-taking. The banking sector had already corrected earlier, and continuous capital flows pulled Vingroup stocks to stabilize the index while selling off mid-cap and small-cap stocks.

The positive news supporting the market faded last week, after the VN-Index experienced a streak of 7 consecutive weeks of gains (up more than 8% since the beginning of January 2025). Next week, the VN-Index is expected to undergo a correction to consolidate before it can move further. The market may consolidate around the 1,308 – 1,320 point range.

SHS Securities Company forecasts that the VN-Index may face downward pressure, retesting the psychological support level around 1,300 points. Currently, it is not the right time to buy more shares. For investors with a high proportion of stocks and an over-expanded portfolio, it may be advisable to reduce or restructure weak stocks. If further purchases are made, careful selection is necessary, and a thorough evaluation based on Q1 2025 business results is required.

Many also believe that the surge in liquidity last week, coupled with the VN-Index's failure to rise correspondingly, signals a potential downturn.

According to Vietnam Construction Securities Company (CSI), the VN-Index traded almost flat in terms of points compared to the previous week (+0.01%), but liquidity surged, setting a new peak for 2025. This indicates that the increase in points is not commensurate with the surge in liquidity, signaling a high likelihood of a correction after the previous seven weeks of impressive gains.

"The expected correction will be to the strong support zone of 1,286 - 1,290 points, awaiting bottom-buying momentum. Therefore, investors should limit new purchases and patiently wait for the correction to the above support zone before aggressively returning to net buying positions," CSI recommends.