VN-Index may move sideways to absorb profit-taking supply

VN-Index started the new week gloomy with the lingering decline from the previous weekend trading session. However, the market performed positively in the next two trading sessions and reached the 1,330 point zone again.

Dinh Quang Hinh, Head of Macro and Market Strategy at VNDirect Securities Corporation, assessed that the recovery momentum was led by positive signals in trade negotiations between Vietnam and the US. Accordingly, at the end of the second round of negotiations, Vietnam and the US made some positive progress, identifying groups of issues that reached consensus and groups of issues that need to be further discussed to reach consensus in the coming time.

Last session of the week, VN-Index increased slightly. Screenshot.

The two sides also pointed out the contents that need to be further negotiated in the third round of negotiations in early June. At the same time, The Trump Organization officially started a $1.5 billion project in Hung Yen . These moves have raised expectations that Vietnam can reach a more favorable trade agreement on reciprocal taxes within the next 45 days.

In addition, the market was also supported by the increase of Vingroup stocks after a series of positive news such as the Prime Minister requesting relevant agencies to study the proposal to build Vinspeed's high-speed railway and the Tu Lien bridge project officially started, helping to improve the infrastructure connecting the Vin Global Gate Co Loa project with the inner city.

The uptrend cooled down as profit-taking pressure increased, causing the VN-Index to fall more than 9 points in the session on May 22. The last trading session of the week witnessed a narrow range of fluctuations around the price range of 1,315 points, with low market liquidity due to the lack of dominance from both buyers and sellers.

At the end of the trading week from May 19 to May 23, the VN-Index was at 1,314.46 points, up a total of 13.07 points (+1%). This is the third consecutive week the market has gone up.

Liquidity decreased slightly during the week. Accumulated for the whole trading week, average liquidity on the Ho Chi Minh City Stock Exchange reached VND22,919 billion (-4.25%) but remained high.

Foreign investors returned to net selling this week with a total of 561 billion VND.

According to experts from Kien Thiet Securities Joint Stock Company, in the last session of the week, the market increased in a narrow range and with low liquidity, showing that the upward momentum is almost gone. In addition, the VN-Index is at the peak of 2025, so the possibility of a further breakout is unlikely. After a long increase before, the VN-Index is approaching the peak of 2025, so increasing profit-taking pressure is inevitable.

Therefore, if VN-Index wants to continue increasing, it needs more time to accumulate or adjust to the balance zone to accumulate more momentum. In case blue-chip stocks no longer have room to carry the market, VN-Index will likely have a period of adjustment and accumulation to form the next trend.

Expert Dinh Quang Hinh believes that next week, the resistance zone of 1,320 - 1,340 will still be a big challenge, as this is the peak zone since the beginning of the year. The market is entering a period of "blank area" of supporting information after the first quarter business results reporting season and the 2025 shareholders' meeting. With the Vietnam - US trade negotiation round taking place in early June, the VN-Index may move sideways in the 1,290 - 1,340 point range to absorb profit-taking supply, waiting for new signals.

“Short-term investors need to switch to a cautious state, maintain a reasonable stock ratio and limit new purchases of stocks that have increased rapidly. In the medium and long term, we expect breakthrough policies to promote the private economic sector from Resolution No. 68-NQ/TU; Resolution No. 198/2025/QH15 on a number of special mechanisms and policies for private economic development that have just been issued will help to deeply reform and significantly improve the business environment in Vietnam. This will be a great driving force for the Vietnamese stock market in the medium and long term,” said Mr. Dinh Quang Hinh.

Source: https://hanoimoi.vn/vn-index-co-the-di-ngang-de-ap-thu-luc-cung-chot-loi-703429.html