Market extends recovery as foreign investors return to bottom-fishing

Market extends recovery as foreign investors return to bottom-fishing

At the close, the VN-Index rose by 12.35 points, or 1.02 per cent, to 1,223.35 points. Market breadth remained positive, with 200 gainers outpacing 102 decliners.

An investor monitors the stock market. — Photo baotintuc.vn

Việt Nam’s stock market continued its upward trend on Thursday, largely supported by strong performances from Vingroup stocks, helping the VN-Index break through the 1,220-point mark. Market liquidity dipped slightly, while foreign investors showed signs of bottom-fishing across key blue-chip counters.

The morning’s sluggish and range-bound trading persisted briefly into the early afternoon session, before giving way to a strong rally. Leading the recovery were heavyweight stocks such as Vingroup (VIC) and Vinhomes (VHM), which spurred a broader rebound among other large-caps.

At the close, the VN-Index rose by 12.35 points, or 1.02 per cent, to 1,223.35 points. Market breadth remained positive, with 200 gainers outpacing 102 decliners.

Total market liquidity fell slightly by 6.8 per cent from the previous day, reaching VNĐ17.6 trillion (approximately US$676 million), with over 798 million shares traded across the board.

The VN30-Index, which tracks the 30 largest listed stocks by market capitalisation, gained 8.62 points, or 0.66 per cent, to end at 1,311.66. Eighteen stocks in the basket advanced, eight declined and four remained flat.

Analysts from Saigon–Hanoi Securities (SHS) noted: “In the short term, the VN-Index remains in a downward trend below the nearest resistance zone at 1,230 points, corresponding to its 20-day moving average. Market sentiment and technical momentum could improve significantly once this threshold is breached. Currently, the VN-Index is forming a support base around the 1,200-point level – a psychologically important zone that also aligns with the five-year average and the 2018 peak.”

The analysts added: “A broader market improvement will require the VN30 Index – representing large-cap stocks – to break through the 1,320-point level, the current 200-day moving average.”

In the near term, SHS analysts pointed to several positive catalysts, including optimism surrounding trade negotiations and expectations of reduced retaliatory tariffs. They also cited easing margin call pressures and first-quarter earnings as contributing to the ongoing market recovery.

“With improving short-term profit-taking opportunities, many stocks – particularly those with sound fundamentals and positive earnings – have rebounded sharply from recent lows,” the analysts noted. “Current conditions favour cautious accumulation for investors with below-average exposure, or short-term trading to average down costs.”

They advised investors to maintain a balanced portfolio, focusing on fundamentally strong stocks, particularly leading firms in strategic sectors with above-average growth potential.

On the Hà Nội Stock Exchange, the HNX-Index edged down 0.38 points, or 0.18 per cent, to 211.07. Trading value on the northern bourse surpassed VNĐ1 trillion, with more than 64 million shares exchanged.

Foreign investors turned net buyers on Thursday, purchasing over VNĐ579 billion worth of shares on the Hồ Chí Minh Stock Exchange (HoSE), signalling renewed confidence in the domestic equity market. 

Bizhub