Market expected to continue recovery phase

Market expected to continue recovery phase

Following this period of adjustment, the VN-Index is likely to continue its recovery to test the 1,860-point resistance.

A trader talks to an investor at a trading room of a securities firm. — Photo vietnamplus.vn

The stock market ended its last trading week of January with significant volatility as the VN-Index experienced a sharp correction in the first half of the week before rebounding in the final two sessions.

Increased profit-taking pressures from large-cap stocks, following a strong rally, resulted in the index swiftly losing over 80 points within the first three trading sessions, plunging toward the psychological support level of 1,800 points.

At this juncture, selling pressure began to weaken, and selective buying emerged, particularly in fundamentally sound stocks with clear growth prospects. 

This shift helped the VN-Index, which represents the Hochiminh Stock Exchange (HoSE), recover considerably in the last two sessions, although it still closed the week at 1,829.04 points, down 41.75 points, or 2.23 per cent, compared to the previous week.

On the Hanoi Stock Exchange (HNX), performance was more positive, with the HNX-Index gaining 1.25 per cent to reach 256.13 points. 

Market liquidity remained low, reflecting the cautious sentiment among investors following a prolonged adjustment period. 

The total trading value across the market for the week reached over VNĐ146.7 trillion (US$5.7 billion), a 16.1 per cent decrease from the previous week. 

A noteworthy downside last week was the trading activity among foreign investors, who continued to sell off shares at a significant rate. 

Cumulative net selling reached nearly VNĐ1.8 trillion across the market, with foreign investors offloading VNĐ1.5 trillion on the HoSE and VNĐ16 billion on the HNX.

Saigon-Hanoi Securities Corporation (SHS) said that after seven consecutive sessions of decline, the VN-Index has begun to recover at a support level corresponding to the highest price of 2025. 

They suggest that the index is entering a consolidation phase within a narrow range around 1,770-1,800 points, with nearby resistance at 1,860 points.

The securities firm anticipates that following this period of adjustment, the VN-Index is likely to continue its recovery to test the 1,860-point resistance. 

Investors are advised to consider opportunities in well-performing stocks, especially as fourth-quarter 2025 earnings reports are unveiled, providing a clearer outlook for 2026.

On the other hand, Vietnam Construction Securities Corporation (CSI) said that the market witnessed two consecutive recovery sessions after the seven-day decline.

Despite improved trading range and liquidity compared to previous sessions, volumes remain approximately 17 per cent lower than the 20-day average, indicating that the reversal signal is not yet firmly established, with cautious sentiment prevailing.

CSI suggests that in the short term, the VN-Index could continue to range and consolidate between 1,810 and 1,845 points before a clearer trend emerges. 

In a favourable scenario, if the 1,800 to 1,810-point support is sustained, the benchmark index could break through to around 1,960 points in the weeks following the Lunar New Year of the Year of the Horse in 2026.

As Việt Nam’s stock market strives to regain equilibrium after this pronounced adjustment, the US and European stock markets navigated a week full of volatility with mixed outcomes. 

Bizhub