Stock Market Enters Uncertain Phase: What’s the Best Course of Action?

Profit-taking pressure increased significantly at the resistance level of 1,350 points, causing domestic stock indices to fall for three consecutive sessions at the end of the week. The VN-Index edged down 0.2% to close the week at 1,329 points.

Market liquidity remained at a similar level to the previous week, indicating stable trading sentiment, but it was not strong enough to break out. Meanwhile, foreign investors continued their net-selling trend, with a total value of over VND 500 billion, creating certain pressure on the overall market.

In terms of sectors, oil and gas stocks witnessed a positive performance and became a bright spot with a strong recovery. In contrast, the retail group faced corrective pressure, partly reflecting the differentiation in cash flow among sectors.

Analysts attributed the market’s cautious sentiment to the lack of supportive information after the first-quarter earnings season and annual general meetings. Additionally, the Vietnam-US trade negotiations have not yet made a breakthrough. The 90-day tariff suspension will expire in just over a month.

The analysis team from Vietnam Construction Securities (CSI) opined that the downward amplitude of the VN-Index and liquidity showed a rising trend, indicating increasing selling pressure. “Three consecutive declining sessions from the 2025 high, large liquidity is threatening the previously formed uptrend,” CSI stated.

However, considering the weekly chart, this week’s adjustment range was not significant, and liquidity did not surge abruptly. Thus, CSI experts predicted that the current correction momentum is insufficient to alter the uptrend and is more of a short-term profit-taking phase.

This adjustment does not rule out the possibility of pulling the VN-Index back to the support zone (1,285 – 1,300 points) in the coming time before resuming the uptrend to conquer the expected resistance threshold (1,398 – 1,418 points).

For the upcoming trading week, Mr. Dinh Quang Hinh, Head of Macroeconomics and Market Strategy at VNDirect Securities, anticipated that the VN-Index would retest the support area around 1,320 points. The market’s short-term uptrend will depend on how it performs at this level.

If this support is lost, Mr. Hinh warned that the VN-Index could retreat to a deeper support area at 1,300 points. In this context, investors should consider reducing leverage and adjusting their stock proportions to a safe level if the VN-Index fails to hold the 1,320-point region.

Realizing profits and prioritizing risk management of the portfolio are recommended as the market is about to enter a “critical” 30-day period with significant events, such as the policy meeting of the US Federal Reserve (Fed) in mid-June and the tariff negotiation deadline in early July.

Experts from Saigon-Hanoi Securities (SHS) also believed that June is an unpredictable month as it approaches the final stage of trade negotiations and the tariff suspension period. The tariff impacts may gradually reflect in enterprises’ business results. The market needs time to form a new equilibrium price range for many tax-affected sectors as fundamentals are changing and weakening.