Investors advised to take profits from stocks having risen sharply

Investors should maintain a balanced stock allocation in their portfolios and consider buying opportunities if the VN-Index retreats to the 1,300-1,320 point range, say market experts.

During the week of May 26-May 30, the VN-Index recorded a strong start, rising 1.4% in the first trading session to 1,332.5 points. The rally was driven by a positive global market reaction to news that the U.S. would delay implementing a 50% tariff on goods imported from the EU until July 9.

Notably, export-focused stocks such as textiles and seafood surged to their daily limit following encouraging developments in Vietnam-U.S. trade negotiations.

Midweek gains were led by real estate stocks, pushing the index to a three-year high of 1,348.3 points on Thursday. However, strong profit-taking pressure later in the day caused the index to slip back to its reference level by the end of that session. The market declined further in Friday’s session.

By the end of the week, the VN-Index closed at 1,332.8 points - up 1.4% compared to the previous weekend. However, the weekly gain was largely concentrated in real estate, textile, and seafood stocks.

In contrast, sectors like banking and retail saw clear corrections in the latter half of the week,. It can be said that cash flow kept flowing into a select group of stocks and broader investor sentiment remains uneven.

Experts recommend maintaining a balanced portfolio

Dinh Quang Hinh, head of macro and market strategy at VNDirect Securities Corporation, stated that the market is likely to continue consolidating in the upcoming week as it digests profit-taking pressure and awaits fresh catalysts.

“The 1,340-1,350 point range remains a strong resistance zone and will be difficult to break in the short term, especially given the recent selling activity by foreign investors for profit taking,” Hinh noted.

Given the market’s ongoing fluctuations, he recommends that investors maintain a moderate stock allocation and consider taking profits from stocks that have seen significant gains.

If the VN-Index falls back to the 1,300-1,320 range, selective buying could be considered in sectors that have not yet fully recovered to their early April levels - before the Trump administration announced the tariff plan - including banking, securities, steel, textiles, and seafood.

Analysts from Saigon-Hanoi Securities Corporation (SHS) observed that selling pressure intensified as the VN-Index approached its previous peak - the highest level since March 2025.

They characterized this as a major resistance zone, one that will require strong, fundamental catalysts to break through.

"Investors should maintain a reasonable proportion of equities. Focus on stocks with strong fundamentals, leadership in strategic sectors, and high growth potential aligned with the broader economy," an SHS report read.

Experts from KIS Vietnam Securities echoed this sentiment, noting that the index’s current volatility near recent highs suggests more time is needed for accumulation before a new upward trend can be confirmed. They recommend investors remain patient and wait for clearer signals before taking action.