Market posts clear recovery with resistance ahead at 1,700 points

Market posts clear recovery with resistance ahead at 1,700 points

The market is in a short‑term uptrend with support near 1,630 and resistance at 1,680-1,700 points.

The bull statue outside the headquarters of the Hochiminh Stock Exchange in HCM City. — VNA/VNS Photo

Việt Nam's stock market posted a pronounced recovery last week, with the VN‑Index rebounding from the early‑week sell‑off around 1,580 points and closing the week at its highest level as buying momentum and broader participation returned to the market.

On the Hochiminh Stock Exchange (HoSE), the market's benchmark VN-Index closed at 1,672.8 points, while the HNX-Index on the Hanoi Stock Exchange (HNX) traded at 243.46 points. 

For the week, the former gained 1.5 per cent and the latter rose 3.7 per cent. 

Liquidity improved versus the prior week. On HoSE, total trading volume reached approximately 4.55 billion shares, up 2.1 per cent, with aggregate value near VNĐ118.7 trillion (US$4.5 billion). 

HNX recorded roughly 448 million shares traded, an increase of about 2.3 per cent.

Market breadth also improved, with roughly 65 per cent of sectors posting gains.

Price volatility was more pronounced among mid-cap and small-cap names, illustrating a two-tiered flow: one tranche of capital focused on core, large-cap stocks to lift the index, while other funds sought recovery opportunities among deeply sold smaller issues.

Securities firms provided a range of technical assessments and tactical guidance based on the week's price action. 

VCBS noted the VN‑Index held around the 1,660-1,670 zone, an important short‑term support, and observed technical signals consistent with a continued recovery, while cautioning that the index could face alternating up‑and‑down moves as it approached the 1,680–1,700 resistance area. 

Saigon - Hanoi Securities (SHS) described the market as in a short‑term uptrend with support near 1,630 and resistance at 1,680-1,700, advising investors to avoid chasing prices as the index nears resistance. 

BSC highlighted the last session's more than 28-point gain and sector-wide breadth (18 of 18 industries advancing), noting that despite cautious sentiment the index had surpassed the 1,645-1,660 band and might target 1,700-1,725, albeit with intermittent volatility.

VCSC said that heavy buying enabled the index to move toward 1,700 points, but that selling risk at higher levels had appeared across banks, brokerages, retail and materials.

The securities firm recommended refraining from opening new short-term positions at elevated prices. 

Meanwhile, SSI Securities (SSI) observed that improved liquidity created an opportunity to test the 1,700-1,720 resistance, with near-term support raised to 1,640-1,660 and a short-term uptrend to be confirmed if the index holds above that band. 

Thien Viet Securities (TVS) pointed to the VN‑Index's break above an important moving average as evidence the rebound had become clearer and noted a scenario in which the index could head toward 1,730–1,740 points. 

The firm suggested small-scale buying in select real estate and brokerage names while maintaining caution.

In general, the market sustained a recovery, but volatility and profit-taking pressure are likely to rise as the VN-Index approaches the 1,680-1,700 resistance zone, analysts said. 

Improved cash inflows were cited as a supporting factor for the rally, while market participants were urged to exercise caution and limit chase buying near higher price levels.

Amid a domestic market recovery that still faces volatility pressures, negative developments in global stock markets, especially in the US, remain a factor that could weigh on investor sentiment in upcoming sessions. 

Bizhub