Market edges up after two sharp declines
Market edges up after two sharp declines
Liquidity improved modestly compared to the previous day, though foreign investors remained net sellers with a significant outflow of over VNĐ4.5 trillion (approximately US$173.9 million).
An investor conducts transactions at SHS Securities Company in Hà Nội City. Photo courtesy of SHS Securities |
Vietnamese stocks staged a mild recovery on Thursday following two consecutive days of steep losses, despite negative sentiment from global markets overnight.
The morning session saw the VN-Index slide steadily, but it later stabilised and came back slightly in the afternoon. Liquidity improved modestly compared to the previous day, though foreign investors remained net sellers with a significant outflow of over VNĐ4.5 trillion (approximately US$173.9 million).
On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index gained 6.95 points, or 0.57 per cent, to close at 1,217.25 points. Market breadth tilted positive, with 187 gainers surpassing 107 decliners.
The VN30-Index, which tracks the 30 largest capitalised stocks, also advanced 9.78 points, or 0.76 per cent, to 1,303.03 points. Of the VN30 constituents, 18 increased, five declined and seven remained unchanged.
Total market liquidity edged up on Thursday, with transaction value reaching VNĐ21.6 trillion (approximately US$834.6 million), up 11.3 per cent from the previous session. Over 807 million shares changed hands.
Vingroup Joint Stock Company (VIC) led the recovery, climbing 4.57 per cent and contributing nearly three points to the VN-Index. Vietnam Airlines (HVN) rose 6.49 per cent, while LPBank (LPB) advanced 2.91 per cent.
In contrast, several large-cap stocks lost ground and dragged on the market, most notably Vietcombank (VCB), which declined 2.02 per cent and erased more than 2.3 points from the VN-Index.
Analysts from SHS Securities said the VN-Index continued to face significant selling pressure over the short term, particularly from investors who bought during the April 11 rally and subsequent sessions, many of whom are now sitting on unrealised losses. The index remains stuck below the key resistance range of 1,250–1,270 points and is hovering just above the psychological support level of 1,200 points – a zone that coincides with the 2018 peak and the November 2024 low.
Some brokerages have started releasing Q1/2025 earnings results, showing margin lending balances continued to rise compared to Q4/2024. Although margin debt has decreased slightly following recent corrections, the elevated end-of-quarter figures may still exert pressure on the current market. Additionally, growing trade tensions between the US and China are creating further uncertainty.
“In the short term, while many stocks remain attractively valued relative to their fundamentals, risks currently outweigh opportunities, especially for sectors exposed to tariff pressures,” the SHS analysts noted.
“Risk management should take precedence under current conditions and investors looking to increase exposure should wait for the market to stabilise. This consolidation may take time, potentially until Việt Nam begins formal trade negotiations with the United States.”
Foreign investors were strong net sellers again on Thursday, offloading over VNĐ4.5 trillion on HoSE alone.
- 15:46 17/04/2025
