“VN-Index Revisits Old Peak: Is it Time to Invest or Hold Back?”

After two weeks of surging past the important resistance level of 1,300 points, reaching the highest price of 2024, the VN-Index continued its upward trajectory towards the peak price of March 2025. However, the pressure to adjust increased in the final sessions of the week. The market closed on May 23 at 1,314.46 points, reflecting a 1% gain compared to the previous week. 

Not an Attractive Price Range for Additional Investment

According to the analysis of SHS Securities, the short-term trend shows the VN-Index growing above the nearest support level of 1,300 points. Selling pressure intensified as the index approached the old peak, the highest price of March 2025.

Additionally, liquidity decreased significantly in the final session, with increased selling pressure at higher prices, indicating a more cautious market sentiment. The VN-Index has already experienced a positive price movement influenced by the VN30 and Vingroup’s stock performance. In the short term, the index is facing adjustment pressure towards the 1,300-point range.

The market is recovering to the price range before the announcement of tariffs. The outcomes of trade negotiations and the imposed tariff levels are expected to impact macroeconomic balances and the operations of businesses. Currently, many stocks still offer reasonable prices relative to their fundamentals.

However, with the VN-Index reaching the old peak zone of 1,320-1,340 points, SHS believes that this is not an attractive price range for additional investment. Therefore, investors should carefully select stocks for new purchases, considering their growth potential.

“Investors should maintain a reasonable portfolio allocation. The investment focus should be on stocks with strong fundamentals, industry leaders in strategic sectors, and those offering exceptional growth potential in the economy,” the report emphasized.

VN-Index Consolidates within the 1,290-1,340 Range to Absorb Profit-Taking Pressure

Sharing a similar viewpoint, Mr. Dinh Quang Hinh, Head of Macroeconomics and Market Strategy, VNDirect’s Analytics Department, stated that in the coming week, the resistance range of 1,320-1,340 remains a significant challenge, as it represents the peak price range since the beginning of the year. The market is entering a “news vacuum” phase, lacking supportive information after the season of Q1 earnings reports and 2025 shareholder meetings.

With the Vietnam-US trade negotiations scheduled for early June, the VN-Index is expected to consolidate within the 1,290-1,340 range to absorb profit-taking pressure, awaiting new developments.

Mr. Hinh advised short-term investors to adopt a “cautious” stance, maintain a reasonable stock proportion, and refrain from purchasing stocks that have already experienced sharp increases.

In the medium to long term, the VNDirect expert believes that the groundbreaking policies to promote the private economic sector, as outlined in Resolution 68-NQ/TW and Resolution 198/2025/QH15, will drive comprehensive reforms and significantly improve Vietnam’s business environment. These policies are expected to be a significant catalyst for the Vietnamese stock market in the medium and long term.