Stock market maintains cautious sentiment next week

Except for the upturn in the first trading session of the week, the market almost slid for the rest of the time. The early breakout attempt failed when the market lacked the leadership of influential industry groups, while the pillar group could no longer maintain its advantage in terms of points.

In the last 3 consecutive sessions of the week, the market has adjusted with liquidity continuously decreasing, reflecting a cautious state. Closing the trading week of March 24-28, the VN-Index stopped at 1,317.46 points, down 0.33%, marking the second consecutive week of decline.

VN-Index decreased in the last session of the week. Screenshot

Liquidity decreased for the second consecutive week. Accumulated for the whole trading week, the average liquidity on the Ho Chi Minh City Stock Exchange reached VND18,751 billion, down 6.555%. Foreign investors were net sellers for the eighth consecutive week on this exchange with over VND2,000 billion.

According to experts from Vietnam Construction Securities Joint Stock Company, VN-Index has had its second consecutive week of decline, the decline is not too large and trading volume has decreased, so the upward trend established in the previous 8 weeks of increase has not been broken. However, after 2 consecutive months of increase, profit-taking pressure increases and the market has a correction period, which is also normal.

This correction could pull VN-Index back to the strong support zone (1,286-1,290 points) before returning to the uptrend. Therefore, investors should remain cautious in their buying direction and patiently wait for VN-Index to test the new support level before strongly disbursing for net buying positions.

Expert Vu Tuan Duy, Market Strategy Department - Analysis Center, Saigon-Hanoi Securities Joint Stock Company (SHS), said that VN-Index is ending a period of strong price increase that lasted for 8 weeks and is constantly under pressure to correct and retest support zones. The short-term trend is moving into a correction and accumulation phase with the nearest support zone at 1,315 points and a stronger support at 1,300 points.

“It can be seen that after the increase period, the VN-Index is under pressure to restructure its portfolio as it is approaching the end of the first quarter of 2025, waiting for updates on fundamental factors and business results. The index representing the Ho Chi Minh City Stock Exchange may be under pressure to adjust and retest the psychological support zone around 1,300 points if it cannot maintain the nearest support zone around 1,315 points,” said the expert.

Experts from VNDirect Securities Corporation believe that next week, the market may maintain a cautious sentiment and the VN-Index may test the important support zone of 1,300 points (+/-10 points).

However, the possibility of the index falling further than this range is not high because concerns about tariffs have been largely reflected in the recent correction; Vietnam has recently taken strong and timely steps to minimize the risk of being imposed “harsh” tariffs by the US; the direct impact of tariffs on the stock market is limited because export-related stocks only account for a small proportion in the structure of stock indices. The risks and impacts of tariffs may be over-exaggerated.

“If the VN-Index retreats to the support zone around 1,300 points (+/-10 points), it will open up opportunities for disbursement at good capital prices for medium- and long-term goals, especially in sectors with positive prospects this year such as banking, securities, residential real estate, electricity, and public investment. In 2025, the market is converging many supporting factors to expect a positive trend, including attractive valuations, positive corporate profit growth prospects, great benefits from the implementation of the KRX system and market upgrade,” this business expert emphasized.

Source: https://hanoimoi.vn/thi-truong-chung-khoan-duy-tri-tam-ly-than-trong-trong-tuan-toi-697341.html