VN-Index stalls under profit-taking pressure, macroeconomic concerns

VN-Index stalls under profit-taking pressure, macroeconomic concerns

After an impressive eight-week rally, the market showed signs of fatigue, with the VN-Index edging lower, prompting investors to adopt a more cautious stance.

A customer conducts a transaction at the headquarters of Bảo Việt Securities Company — VNA/VNS Photo

Việt Nam’s stock market experienced a volatile trading week, marked by alternating gains and losses and sharp divergence across industry groups.

After an impressive eight-week rally, the market showed signs of fatigue, with the VN-Index edging lower, prompting investors to adopt a more cautious stance.

At the beginning of the week, the VN-Index climbed above 1,330 points amid investor optimism. However, the momentum quickly faded as the market faced strong profit-taking pressure near the 1,340-point resistance level.

The benchmark index reversed course and ended the week at 1,321.88 points, down 4.3 points or 0.3 per cent compared to the previous week.

Meanwhile, the HNX-Index closed at 245.82 points, gaining 3.09 points or 1.2 per cent.

One of the major factors weighing on sentiment was continued strong net selling by foreign investors. Foreign capital outflows persisted for the last three consecutive sessions of the week, with net sales reaching trillions of đồng per session.

The selling pressure concentrated on large-cap stocks such as FPT and Mobile World Investment Corporation (MWG), dragging the VN-Index lower.

Đinh Quang Hinh, Head of Macro and Market Strategy at VNDIRECT Securities, said the VN-Index’s pullback near the 1,340-point resistance was expected.

“This correction may continue in the early sessions of next week. Investors should closely monitor foreign net selling activity and bottom-fishing demand around the 1,300–1,320 point support zone,” Hinh said.

He added that market sentiment is also being dampened by uncertainties surrounding the US Federal Reserve’s monetary policy and fears that Việt Nam may be subjected to retaliatory tariffs by the United States. In addition, recent negative news linked to certain listed firms has further weighed on investor confidence.

Despite short-term risks, Hinh remained upbeat about the market’s medium-term outlook.

“In the medium term, there are still several supportive factors, including attractive valuations, positive corporate earnings prospects in 2025, the anticipated rollout of the KRX trading system, and the potential upgrade of Việt Nam to emerging market status by FTSE,” he said.

He also viewed the ongoing correction as an opportunity to accumulate stocks at more favourable entry points, particularly in promising sectors such as banking, securities, residential real estate, power and public investment.

Echoing this view, Phan Tấn Nhật, Head of Research at Saigon-Hanoi Securities (SHS), observed that the VN-Index had broken its eight-week winning streak.

“The market is seeing significant divergence. The VN-Index is undergoing a correction across several sectors that had previously rallied in line with the index. In contrast, underperforming sectors such as telecom and technology are showing signs of recovery,” Nhật noted.

He also pointed out that market breadth was relatively negative, especially in real estate and brokerage stocks, while banking stocks recorded strong gains thanks to heightened foreign investor interest.

“In the short term, the current price levels are not attractive for additional investment,” Nhật said.

Given the divergence in market trends and underlying risks, analysts advise investors to remain cautious and focus on portfolio risk management. 

Bizhub