VN-Index rebounds slightly as foreign investors return amid upgrade hopes

VN-Index rebounds slightly as foreign investors return amid upgrade hopes

The VN-Index closed at 1,316.23 points, gaining 5.66 points or 0.43 per cent from the previous session, after briefly surpassing the 1,320-point threshold in morning trade.

Investors conduct transactions at SSI Securities Company. — Photo ssi.com.vn

Việt Nam’s stock market staged a mild rebound on Tuesday, supported by a recovery in foreign capital inflows and growing optimism over macroeconomic prospects and potential market reclassification.

The VN-Index closed at 1,316.23 points, gaining 5.66 points or 0.43 per cent from the previous session, after briefly surpassing the 1,320-point threshold in morning trade. Market liquidity improved slightly, with total trading value on the Hồ Chí Minh Stock Exchange (HoSE) exceeding VNĐ18.4 trillion (US$707 million), up 3.3 per cent from Monday.

Advancers outnumbered decliners by 162 to 135, while the VN30-Index — tracking the 30 largest stocks by market capitalisation — also rose by 8.26 points or 0.59 per cent, with 14 stocks gaining, nine declining and seven remaining unchanged.

Vinhomes (VHM) led the market’s rebound, adding 2.69 per cent and contributing nearly two points to the VN-Index. Other stocks within the Vingroup ecosystem also performed well, including Vincom Retail (VRE), which jumped 3.72 per cent, and Vingroup (VIC), which edged up 0.33 per cent.

On the Hà Nội Stock Exchange, the HNX-Index slipped slightly by 0.04 per cent to close at 226.4 points, with a trading value of VNĐ1.2 trillion and a volume of more than 70 million shares.

Significantly, foreign investors returned as net buyers on HoSE, posting a net purchase of over VNĐ311 billion, ending a four-session selling streak. The rebound in foreign activity is viewed as a positive signal, especially as net outflows from ETFs in May showed signs of easing compared to previous months.

According to SSI Research, May saw net redemptions of VNĐ282 billion from ETFs, equivalent to 12.7 per cent of their total assets. Over the first five months of the year, cumulative net outflows reached more than VNĐ7 trillion, of which nearly VNĐ5 trillion came from foreign investors.

However, a notable turnaround occurred in domestic ETFs, with the DCVFMVN Diamond ETF attracting a net inflow of VNĐ335 billion — the first such inflow after six months of persistent withdrawals.

In terms of foreign capital, the net outflow of VNĐ420 billion in May marked a significant improvement. Some ETFs such as the Global X MSCI Vietnam ETF even recorded a modest net inflow of VNĐ44.5 billion, while others like Fubon ETF and Xtrackers continued to see outflows, albeit at reduced levels.

Analysts believe that the recent net buying by foreign investors reflects growing confidence in the potential upgrade of Việt Nam’s stock market in upcoming reviews, as well as progress in Việt Nam–US trade negotiations.

VnDirect noted that the weakening of the US Dollar Index below the 100-point level in May, along with expectations that the Federal Reserve will cut interest rates twice this year, could create favourable conditions for capital to return to emerging markets — including Việt Nam.

Given this backdrop of improving macroeconomic conditions and positive technical signals, the market is expected to attract additional liquidity, particularly from foreign investors. Nonetheless, analysts advise caution due to possible volatility as investors may seek to take profits following the recent recovery. 

Bizhub