Stock market starts the week positively as VN-Index successfully surpasses 1,330 points

Stock market starts the week positively as VN-Index successfully surpasses 1,330 points

Despite the market's gains, market breadth leaned towards decliners, with 128 advancing stocks compared to 183 decliners.

A Vietcombank transaction office in Hà Nội City. The lender's VCB shares led the market on Monday, contributing to the VN-Index successfully surpassing the 1,330-point mark. — Photo Baotintuc.vn

The stock market began the new trading week with gains, as the VN-Index successfully surpassed the 1,330-point threshold, while trading liquidity also improved but foreign investors continued their net-selling streak.

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index rose by 4.23 points, or 0.32 per cent, to close at 1,330.28 points. Despite the market's gains, market breadth leaned towards decliners, with 128 advancing stocks compared to 183 decliners. Trading liquidity increased to VNĐ22.7 trillion (US$882.9 million), with over one billion shares changing hands.

The VN30-Index, which tracks the 30 largest stocks by market capitalisation, also edged up 1.3 points, or 0.09 per cent, to 1,391.07 points. Among the VN30 basket, 16 stocks advanced, 10 declined and four remained unchanged.

Leading the market rally was the Bank for Foreign Trade of Việt Nam (VCB), which rose by 1.79 per cent, contributing over 2.3 points to the VN-Index.

Other major gainers included Vingroup Joint Stock Company (VIC), which surged 4.42 per cent, and Investment and Industrial Development Corporation (BCM), which hit the ceiling with a 6.93 per cent increase. Additionally, the Bank for Investment and Development of Việt Nam (BID) and Vinhomes JSC (VHM) gained 0.61 per cent and 0.78 per cent, respectively.

On the downside, several large-cap stocks put pressure on the market. FPT Corporation (FPT) declined 1.49 per cent, while Fortune Việt Nam Joint Stock Commercial Bank (LPB) lost 1.69 per cent, and Việt Nam Commercial Joint Stock Export Import Bank (EIB) dropped 2.77 per cent.

According to analysts at SHS Securities, the market continued its upward momentum into the new trading week, with the VN-Index successfully conquering the 1,330-point mark alongside improved liquidity.

"Notably, trading volume over the past seven weeks has exceeded the 2024 yearly average, indicating that the VN-Index is breaking out of its medium-term accumulation trend. The increasing alignment between volume and price action continues to present good investment opportunities," SHS analysts noted.

"In the short term, the VN-Index maintains an upward trend, with the nearest psychological support at around 1,300 points. Given this positive outlook, the VN-Index may target the 1,400-point level in the near future."

However, experts caution that while overall market conditions are improving, investors should remain selective. "Market capitalisation currently stands at approximately US$299 billion, equivalent to 63 per cent of Việt Nam’s 2024 GDP. While this is not an overly attractive valuation, the market still offers plenty of short-term rotational opportunities across sectors, particularly as the VN-Index breaks through its 1,300-point resistance," the report added.

"As a result, investors are increasingly searching for short-term trading opportunities, with stop-loss levels raised to around the 1,280–1,290-point range, following the VN-Index’s overall uptrend."

On the Hà Nội Stock Exchange (HNX), the HNX-Index also gained 0.46 per cent, closing at 239.5 points. Trading value on the northern exchange exceeded VNĐ1.2 trillion, with over 69 million shares changing hands.

Meanwhile, foreign investors extended their net-selling streak, offloading over VNĐ575 billion worth of shares on HoSE. 

Bizhub