However, analysts remain cautious about the near-term outlook, advising investors to trim equity exposure to safer levels and avoid chasing rallies.
The VN-Index closed the August 3-7 trading week at 1,768.06 points, up 32.28 points, or 1.86 percent, from the previous week. The HNX-Index rose more than 22 points, or over 8 percent, to 293.44.
Despite the market's two-week rebound, securities firms remain guarded about the benchmark's prospects in the week ahead.
Kirin Securities (CSI) said the market's upward momentum was losing steam, while the resistance zone around 1,790 points remained unbroken. Investors should therefore refrain from rushing into new positions and instead wait for the VN-Index to test the 1,720-point support level and assess its reaction, the brokerage said.
Vietcap (VCI) noted that, from a technical perspective, the VN-Index had yet to break above 1,770 points, a level close to its 200-day moving average (MA200). This suggests that selling pressure remains significant at a key technical resistance zone. The index could retest support at 1,745-1,750 points in coming sessions, Vietcap said.
Pinetree Securities expects the VN-Index to continue consolidating within a 1,745-1,800-point range as the market enters an information vacuum following the second-quarter earnings season.
Thien Viet Securities (TVS) likewise maintained a cautious stance, forecasting that the index could retest support around 1,750 points. Positive catalysts that have supported the market recently may lose momentum in the short term, while continued net selling by foreign investors and a correction in Vingroup-related stocks could add further pressure.
"Investors should consider reducing their equity exposure to safer levels and avoid chasing prices during rebounds," TVS analysts advised.
Valuations return to attractive territory
The market's recovery has coincided with renewed buying by foreign investors, who have focused on blue-chip stocks and returned to being net buyers, with net purchases exceeding VND2.1 trillion in the first week of August.
Analysts said expectations surrounding Vietnam's potential market upgrade have helped bolster foreign investor sentiment.
Meanwhile, listed companies continued to report strong second-quarter earnings. Aggregate after-tax profit among the covered companies rose 41.2 percent year on year, marking the fifth consecutive quarter of earnings growth for listed businesses.
SSI Research said many stocks had fallen back to price levels last seen in 2023, despite their earnings having increased two- to fourfold from a year earlier. The research house also expects foreign investors' net selling pressure to gradually ease as capital flows increasingly position themselves ahead of FTSE Russell's expected upgrade of Vietnam to emerging-market status in September.
Vietnam remains attractive to global investors because of its macroeconomic stability and its favorable position amid the ongoing reallocation of global capital, SSI Research said.
With part of the market's leverage already unwound, SSI Research expects forced-selling pressure to ease over the next one to two months, creating a more favorable backdrop for short-term trading. This could open up opportunities in August.
Nevertheless, the brokerage cautioned that the market has yet to signal a reversal of its medium-term trend. Interest-rate pressures are likely to persist through the second half of 2026, amid robust credit demand and the Government's ambitious economic growth target.
VNDIRECT Securities recommended that investors maintain a flexible trading strategy, with risk management taking precedence and aggressive buying avoided during sharp rallies.
Fresh capital could be deployed when the VN-Index corrects and consolidates around 1,720 points, within a range of approximately plus or minus 10 points, VNDIRECT said. Investors should prioritize companies with strong fundamentals, high liquidity, and positive earnings-growth prospects.
According to VNDIRECT, a close above 1,780 points in the final sessions of the week would strengthen confirmation of a medium-term bottom and raise the prospect of the index advancing toward the 1,850-point resistance level.
Analysts also recommend that investors shift their focus away from trying to predict the benchmark's exact trajectory and instead concentrate on stock selection by sector. Public investment, infrastructure, industrial parks, and defensive consumer stocks are among the groups expected to attract attention in the second half of the year.
16 of 20 companies announce cash dividends
About 20 companies are scheduled to set record dates for dividend payments during the August 10-14 week, with nearly 16 opting to pay dividends in cash.
FPT Online Services JSC (FOC) will pay a cash dividend equivalent to 100 percent of par value, meaning shareholders will receive VND10,000 for each share held.
Ha Giang Mineral and Mechanics JSC (HGM) will make its first 2026 interim dividend payment at a rate of 50 percent, or VND5,000 per share. Meanwhile, Binh Dien Fertilizer JSC (BFC) will pay its 2025 cash dividend at a rate of 35 percent, equivalent to VND3,500 per share.
Among companies paying dividends in shares, Military Commercial Joint Stock Bank (MBB) plans to issue more than 1.2 billion new shares as a 15 percent stock dividend. Under the plan, shareholders holding 100 existing shares will receive 15 additional shares.
