Market could move toward the 1,940-point in short-term

Market could move toward the 1,940-point in short-term

Securities companies maintained cautious but generally constructive views on the market's medium-term outlook amid the ongoing volatility.

An investor talks over the phone while observing the market's movements. — VNA/VNS Photo

The stock market closed last week with strong volatility as the VN-Index continuously fluctuated around its historical peak zone.

Selling pressure increased from the beginning of the week, causing the benchmark index at one point to fall sharply below the 1,900-point threshold, even nearing the 1,860-point level during the midweek session before rebounding strongly.

The tug-of-war movements reflected investors' cautious sentiment as the market entered an unprecedented price territory. However, support from large-cap stocks and speculative cash flow rotating among different sectors helped the VN-Index recover quickly and establish a new all-time high around the 1,925-point mark.

May 14's session emerged as the highlight of the week when strong afternoon buying pushed the VN-Index up more than 27 points, officially surpassing the 1,925-point mark and setting a new all-time high for the Vietnamese stock market.

Alongside the benchmark index, total market capitalisation on the Hochiminh Stock Exchange (HoSE) also exceeded VNĐ9.07 quadrillion (US$344.1 billion) for the first time, underscoring the rapid expansion of Việt Nam's equity market in recent years.

However, market breadth remained uneven as cash flow concentrated mainly on leading blue-chip stocks while many mid-cap and penny stocks came under strong profit-taking pressure.

Although liquidity stayed at elevated levels, analysts noted that the market had yet to establish sufficient consensus to sustain a clear breakout beyond the 1,900-1,920 point trading range.

The VN-Index finished the week at 1,921.6 points, gaining 0.33 per cent for the week.  

On the Hanoi Stock Exchange (HNX), the HNX-Index ended the week at 257.43 points, up 4.43 per cent.

Market liquidity remained broadly stable. Total trading value on the southern bourse reached approximately VNĐ124.13 trillion during the week, largely unchanged from the previous week.

Meanwhile, liquidity on the HNX declined sharply, with total trading value falling 14.5 per cent week-on-week to around VNĐ5.49 trillion.

One of the most notable developments was the continued aggressive net selling by foreign investors despite the market’s record-setting performance. Foreign investors posted net sales of approximately VNĐ3.91 trillion on the market.

The HoSE accounted for the majority of the outflows with net selling of roughly VNĐ3.82 trillion.

Although the value of net foreign selling eased slightly compared with the previous week, the scale of capital withdrawal remained elevated even as the market reached new historical highs.

Securities companies maintained cautious but generally constructive views on the market's medium-term outlook amid the ongoing volatility.

According to Vietcap Securities, the VN-Index continues to maintain its upward trend as long as the short-term support zone around 1,890-1,900 points remains intact.

The brokerage said that if the benchmark index successfully breaks above the 1,920-point threshold with supportive liquidity, the market could move toward the 1,940-point region in the near term.

Meanwhile, BIDV Securities Company (BSC) said large-cap stocks remained the primary pillar supporting the market. However, the firm noted that a more decisive breakout would require broader cash flow participation and stronger consensus across sectors.

According to Tien Phong Securities (TPS), liquidity continuing above the 20-session average indicated that buying demand remained relatively positive. Nevertheless, short-term selling pressure persists as the VN-Index has yet to decisively overcome the resistance zone near 1,925 points.

Market experts advised investors to avoid aggressive buying during sharp rallies and instead focus on restructuring portfolios toward fundamentally strong stocks with clear upward trends and solid cash flow support. 

Bizhub