HÀ NỘI — The stock market enters a new trading week with both optimism and challenges.

Following a strong breakthrough above 1,600 points last week, investors are now eyeing the possibility of the VN-Index retesting the 1,650–1,660 zone.

However, analysts warn that short-term profit-taking pressure remains significant, especially as many stocks have surged sharply and foreign investors continue strong net selling.

Phan Tấn Nhật, head of analysis at Saigon – Hà Nội Securities (SHS), said the VN-Index is maintaining an upward trend but faces selling pressure around 1,650 points.

“In history, there has never been a rally of the VN-Index and VN30 of around 60 per cent from the bottom without a notable correction,” Nhật said, adding that risks of a short-term peak forming in some overheated stocks should not be overlooked.

Echoing this view, analysts at Vietcombank Securities (VCBS) noted that although domestic cash flow remains robust, the VN-Index’s move to 1,660 points in the final session last week before sliding back to 1,620 points reflected strong profit-taking pressure.

VCBS advised investors to manage risk carefully, avoid chasing stocks that have already risen sharply and instead focus on fundamentally sound shares with potential to attract foreign capital.

Last week, the VN-Index advanced by 45 points, or 2.8 per cent, closing at 1,630 points above the key 1,600-point threshold. The VN30 gained 3.13 per cent to 1,783.25 points.

The market recorded four consecutive gaining sessions before a correction at week’s end. Liquidity reached a new record with total trading value at VNĐ259.5 trillion (US$9.8 billion), averaging VNĐ47.5 trillion per session, up 5 per cent from the previous week.

Domestic funds continued to rotate actively, supporting insurance, securities, banking and oil and gas stocks.

By contrast, technology, chemicals, textiles, fisheries and particularly real estate came under heavy selling at the end of the week. This divergence reflects the significant split after a large number of shares had surged earlier.

According to Dragon Capital, the medium- to long-term outlook for the market remains optimistic. Macro factors such as robust public investment, expanding credit, controlled inflation and ongoing legal reforms continue to reinforce investor confidence.

However, the fund warned that the market has become more sensitive to external risks after the strongest upswing in three years.

In the short term, experts believe the VN-Index may fluctuate within the 1,600–1,660 range, with a possible retest of the 1,600 support level if selling pressure persists.

Corrections are considered necessary for the market to establish a new equilibrium before maintaining its medium- to long-term upward trend, targeting 1,750–1,800 points in 2026. — VNS