VN index reaches three-year high – investors on alert!

VN index reaches three-year high – investors on alert!

The VN index achieved a significant increase at the end of the last trading week in May 2025, closing above 1,330 points. This marks the beginning of an encouraging phase as the index recorded four consecutive weeks of growth after experiencing a sharp decline in early April 2025. Last week the index reached 1,348.3 points, its highest level in three years.

Although this increase initially appeared positive, strong profit-taking pressure signaled an imminent end to the rally. Analysts warn that such profit-taking led to a decline in the index at the end of the week. In particular, the real estate, textiles and seafood sectors contributed significantly to this increase, while many other industries showed an indecisive sideways movement.

Market dynamics and investor behavior

Dinh Quang Hinh of VNDIRECT Securities Company noted that there is no clear consensus in the market. Cash flow is currently concentrated in certain groups of stocks, while the banking and retail sectors are showing signs of correction. According to the experts, the market is expected to continue its accumulation trend. At the same time, many players are waiting for new information, especially with regard to the customs negotiations between Vietnam and the USA.

Many investor accounts have not yet recovered to levels before the April decline. Analyst Dinh Viet Bach of Pinetree Securities Company noted that pressure from market volatility is being felt as the index approaches its previous high. Investors may act cautiously in the first week of trading in June as they await the results of these negotiations.

Strategies for investors

The experts advise thinking about a distribution if the VN index corrects to between 1,300 and 1,320 points. Recommended stock groups for potential distributions include banks, securities, steel, and textiles and seafood. Dao Hong Duong of VPBank Securities Company also highlights the psychological factors in investing that should not be underestimated.

It is also advised to invest in undervalued stocks to reduce the risk of short-term losses. In a volatile environment like the one currently prevailing on the market, it is crucial for investors to carefully consider their own investment goals and risk tolerance. Although trading in financial instruments is potentially profitable, it also involves high risks that can lead to a partial or total loss of the investment. This is done by investing.com underlined because prices can fluctuate greatly and are influenced by external factors such as political or financial events.

In this context, it is advisable to seek professional advice and ensure that you have all the necessary information about the risks and costs of trading. Despite the positive trends of the VN index, the market remains tense and requires patience and informed decisions from investors.