HÀ NỘI — The domestic stock market experienced a bumpy trading week, as both the VN-Index and liquidity saw notable declines last week, reflecting a prevailing cautious sentiment among investors. Analysts predict that the index is likely to retest the support level at 1,620 points.

On the Ho Chi Minh Stock Exchange (HoSE), the VN-Index closed the week at 1,639.65 points, down 2.6 per cent from the previous week. 

Liquidity also dropped significantly, with total market trading value reaching nearly VNĐ137.6 trillion (US$5.2 billion), a decrease of 26.76 per cent compared to the previous week.

On the Hanoi Stock Exchange (HNX), the trend mirrored that of HoSE, with the HNX-Index finishing the week at 265.85 points, down 0.54 per cent from the previous week. Its liquidity fell to VNĐ10.2 trillion, a drop of 34.8 per cent. 

Foreign trading activity showed a mixed picture. While FPT Corporation's major technology stock FPT continued to attract strong buying interest, financial sector stocks, including banks and securities, faced significant selling pressure from foreign investors. 

During the week, foreign investors net sold a total of over 172 million shares, with a total net selling value of nearly VNĐ3.1 trillion. FPT saw the highest foreign net buying volume, with nearly 19.3 million shares purchased, amounting to VNĐ1.350 trillion.

Market experts suggest that the outflow of foreign capital is primarily driven by psychological factors, but the potential for a return remains high, given the overall positive outlook for the market. 

While market fluctuations are inevitable, the focus should remain on its long-term prospects.

Asean Securities predicts that the market will continue to experience volatility this week, with immediate support levels around 1,600-1,620 points and resistance near 1,650-1,660 points. 

Short-term investors holding stocks may maintain their current positions with fundamentally sound representatives trending upwards, the securities firm added. 

Meanwhile, those with significant cash holdings might consider gradually entering positions during corrections in stocks that benefit from macroeconomic easing policies or have short-term support narratives, such as IPO waves or emerging sectors like AI and cryptocurrency.

For long-term buy-and-hold investors, increasing exposure should only occur during deeper market pullbacks, prioritising top-performing stocks with a solid growth outlook for 2025-2026.

Phu Hung Securities maintains a neutral stance, indicating that the 1,620-point level offers market support. 

The current trend shows funds shifting from high-value core stocks to undervalued sectors with more attractive discounts. The index has cooled off to the lower support range of 1,620-1,690 points. 

Low liquidity suggests that selling pressure is not overly negative, allowing potential buying-the-dip opportunities at this level. However, if the 1,600-point threshold is breached, the index may drop further to the 1,540-1,550 point range.

Mid-cap stocks are showing improved liquidity, presenting some trading opportunities even as the market remains sideways. 

Investors should pay attention to stocks with reported earnings growth and signals of exiting the correction phase as potential entry points. Buying should be considered with a moderate allocation to mitigate risks if the VN-Index shows signs of breaking below the 1,600-point mark. Key sectors to watch include exports, retail and utilities.

Meanwhile, Vietcap Securities has a negative outlook, stating that the VN-Index is heading toward the 1,620-point level.

The firm anticipates potential buying activity at lower prices in the banking, retail and materials sectors, which may help the index maintain its range between 1,620 and 1,700 points in the near term. — BIZHUB/VNS