VN-Index approaches resistance zone after two-week recovery

The VN-Index, representing the Ho Chi Minh City Stock Exchange (HoSE), has extended its recovery for two consecutive weeks, closing last week at 1,768.06 points, an increase of approximately 1.9 percent.

Despite the gains, analysts suggest the market is in a consolidation phase as it approaches key resistance zones between 1,775 and 1,810 points. While market breadth has improved—with 51 percent of stocks trading above their 20-day moving average—investors remain cautious due to subdued liquidity and global uncertainties. Foreign investors have returned to net buying, totaling over VNĐ2.1 trillion (US$80 million) recently.

Domestic support remains a factor, with the State Bank of Vietnam announcing a VND220 trillion ($8.4 billion) credit package for small and medium-sized enterprises, alongside extended tax and fee relief policies. Corporate earnings also show strength; HoSE-listed companies reported a 45.8 percent year-on-year increase in profit after tax for the second quarter, driven largely by the banking and property sectors.